- The SUV segment of Indian automobile manufacturers such as Maruti Suzuki and Mahindra & Mahindra has gained strong demand in the last year.
- Maruti Suzuki and Mahindra reported SUV sales growth of 24% and 39%, respectively.
- Sales of SUVs accounted for 36% of Maruti’s domestic passenger vehicle sales this fiscal year, compared to 22% last fiscal.
- Bajaj Auto’s domestic sales have risen by 26%, fueled by the robust sales of its entry-level motorcycles during the wedding season.
- Sales data from major players like Tata Motors, TVS Motor, and Hero MotoCorp are anticipated later in the day.
Automobile Sector Dynamics
Despite the pressure from entry-level vehicle sales, Indian automakers are seeing a financial lift from high-end car sales. These premium vehicles appeal to wealthier customers, who have remained largely unaffected by inflation.
Growth of SUV Sales
Within the domestic market, Maruti Suzuki and Mahindra & Mahindra saw impressive SUV sales growth, with increases of 24% and 39%, respectively. It appears that the SUV sector’s robust demand last year greatly benefited these Indian car manufacturers.
Mahindra’s Soaring Sales
Mahindra, a creator of popular SUVs such as the Thar, Scorpio, and XUV, boasted several months of record sales in this segment in 2023. The firm experienced a monthly sales growth rate of between 20% and 57% during the current fiscal year.
The SUV’s Market Share
SUV sales have become a significant portion of Maruti’s domestic passenger vehicle sales for this fiscal year, forming 36%, a noticeable increase from the 22% recorded last fiscal year. Mahindra’s passenger vehicle sales were almost entirely made up of SUVs.
Maruti’s Strategic Discounting
Maruti increased discounts on its lesser-priced models by 40% to 45% due to the typical year-end larger discounts and low demand for entry-level vehicles. However, sales of smaller Maruti cars like the Alto and Baleno dropped by 29% in part because of the wholesales’ moderation.
Growth of Two-Wheelers
The domestic sales of Bajaj Auto, a two-wheeler manufacturer, soared by 26% due to the strong demand for entry-level motorcycles during the first half of the month. Importantly, strong consumer demand for their Triumph motorcycles helped drive their volume growth. Analysts attributed this sales swell to the first half of the month’s wedding season, which typically drives two-wheeler purchases.
Tata Motors (NYSE:), TVS Motor, and Hero MotoCorp, India’s leading two-wheeler maker, will announce their monthly sales data later today.
The sales performance of these major automakers could influence the forex market and impact stock prices in the automobile industry.