The Indian automotive industry is experiencing a slow down in cars sales with increasing costs and an economic slowdown. Dealers were sitting on a lot of inventory in the month of September but the festive season in October brought in quite a bit of relief with a considerable increase in SUV sales.
Maruti Suzuki posted a surge of 19.4% in SUV sales while Mahindra, whose portfolio comprises of mostly SUVs posted an increase of 25% in SUV sales. This was mainly due to new launches like the Thar ROXX and festive discounts that were being offered on their vehicles. Tata Motors, whos portfolio also mostly comprises of SUVs stayed steady.
Dealers were sitting on inventories of around 85 days in September but it came down to a reasonable 30 days after the festive season sale. Maruti Suzuki also reported an all time high sales of around 206, 434 units which included export models and models from Toyota as well.
Small Cars Are Slowing Down
Sadly, the small car segment is slowly dying and Maruti Suzuki small car sales dropped by 5% while the whole segment sales dropped by 20%. Only Hyundai Motors could manage a 0.8% sales increase in this segment. Indians are splurging on bigger and more premium cars and the entry level buyer is also looking for an SUV now.
SUVs have always been a hit in the Indian market and with manufacturers rolling out even more affordable models, it has become a no-brainer for the people of India. The higher ground clearance definitely helps with the crumbling infrastructure and the sense of sitting high up also provides people with a sense of safety.
Brands like Mahindra have shifted their focus completely on SUVs and they are building world-class products which have become quite popular abroad as well.
