In a recent development in the Indian automobile industry, Maruti Suzuki, a prominent car manufacturer, has dethroned Mahindra & Mahindra to become the leading producer of Sports Utility Vehicles (SUVs) in the country. Shashank Srivastava, the Executive Director at Maruti Suzuki, made this announcement during an interview with CNBC-TV18 on September 4.
Srivastava proudly shared that Maruti Suzuki achieved an impressive 16.5 percent year-on-year (YoY) growth in August, surpassing the industry’s growth rate. He anticipates that the company will cross the remarkable milestone of 1 million sales during the upcoming festive season. Traditionally, the festive season contributes to 26 percent of the overall annual sales in the Indian automobile market.
One of the key factors contributing to Maruti’s success in the SUV segment has been the introduction of four new SUV models, significantly increasing the brand’s market share. This strategic move resulted in a substantial 25 percent growth in retail sales during the Onam season in Kerala this year.
Srivastava also highlighted a notable shift in the Indian automobile landscape. Over the past year, the market share of small cars has decreased from 35 percent to 30 percent, while the SUV segment is experiencing robust growth. SUVs now account for a significant 49 percent of the overall market, compared to just 29 percent a few years ago.
In the month of August, several Indian automakers reported increased sales in both passenger and commercial vehicles. Maruti Suzuki and Mahindra & Mahindra witnessed impressive growth in their passenger vehicle (PV) sales, with a YoY increase of 16.4 percent and 26 percent, respectively.
Mahindra & Mahindra Ltd. (M&M Ltd.) achieved an overall auto sales growth of 19 percent in August 2023, including exports. Notably, their Utility Vehicles segment recorded the highest-ever SUV sales, with 37,270 vehicles sold domestically and a total of 38,164 vehicles, including exports. Domestic sales for Commercial Vehicles also reached 23,613 units.
In contrast, Tata Motors reported a 3.5 percent decline in PV sales. The company’s total sales in August 2023, including both domestic and international markets, stood at 78,010 vehicles, compared to 78,843 units in August 2022. However, Tata Motors noted a positive performance in the Medium and Heavy Commercial Vehicles (MH&ICV) segment, with domestic sales of 13,306 units and a total of 13,816 units in both domestic and international markets.
Among two-wheeler manufacturers, TVS Motor Company reported a 5 percent increase in sales, while Bajaj Auto experienced a 31 percent decline. Eicher Motors witnessed an 11 percent growth in total motorcycle sales, contributing to the diverse trends observed in the Indian automotive sector during August 2023.
