While mass-market car sales remain sluggish due to inflation, automakers have benefited from selling premium cars, which cater to a well-off demographic and are largely unaffected by higher prices.
Accordingly, Maruti Suzuki (MRTI.NS) and Mahindra & Mahindra (MAHM.NS) reported domestic SUV sales growth of 24% and 39% year-on-year, respectively.
Cars are seen parked at the Maruti Suzuki plant in Manesar, in the northern state of Haryana, India, August 11, 2019. Photo: Reuters.
The SUV segment of Indian automakers has benefited from strong demand over the past year.
Mahindra, which makes SUVs like the Thar, Scorpio and XUV, has had several record sales months in the category in 2023. Its sales have grown 20%-57% every month so far this fiscal.
SUV sales have accounted for 36% of Maruti's domestic passenger vehicle (PV) sales so far this fiscal, compared to 22% in the previous fiscal, while accounting for almost all of Mahindra's PV vehicle sales.
The end of the year, when automakers typically offer bigger discounts, coupled with demand for entry-level vehicles, has prompted Maruti to increase discounts on its cheaper models by 40% to 45%.
However, sales of small cars like Alto and Baleno fell 29%, partly due to Maruti's wholesale restrictions.
Tata Motors (TAMO.NS) reported an 8% rise in domestic solar panel sales without specifying growth rates for different car types.
Among two-wheelers, domestic sales of Bajaj Auto (BAJA.NS) and TVS Motor (TVSM.NS) rose 26% and 27% respectively, while sales of Eicher Motors (EICH.NS) Royal Enfield motorcycles fell 7%.
Analysts said Bajaj and other two-wheeler makers benefited from the wedding season that took place in the first half of the month.
Le Na (According to Reuters)
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