The trend has clearly shifted to consumers buying more of compact SUVs rather than small cars. While the shift in preference has been building for more than a year now, it is quite visible in October which saw sales of passenger car flattish during the festival month. Most of the demand during the festive season were for compact utility vehicles which offer products like Vitara Brezza from Maruti and Creta by Hyundai Motor.
Passenger cars registered 0.45% year-on-year increase in volumes to 195,036 units mainly due to high demand for premium hatchbacks like i20 and Baleno. Utility vehicle sales on the other hand increased by a whopping 21.37 % year-on-year to 70,544 units as result of a shift in demand to products like Vitara Brezza, Creta, TUV 300 and KUV 100.
Maruti Suzuki registered a 9.8% and 1.8% decrease in sales respectively, in the mini and the compact segment as opposed to a growth of 90.9% y-o-y in the utility vehicle segment. Hyundai Motor also registered domestic sales to the tune of 50,016 units which is the fastest in the company’s history in India. Mahindra and Mahindra (M&M) registered 3% y-o-y increase in volumes during the month, according to the data released by the Society of Indian Automobile Manufacturers (Siam).
“The festive season has brought about some cheer for the automotive industry with improved sentiments, on the back of a near normal monsoon, rural surge in demand and some new vehicle launches. Some of our power brands such as the Bolero, Scorpio, TUV300 and the pick-ups have performed well. At Mahindra we are happy to achieve a 28% growth in our exports,” said Pravin Shah, president and chief executive (automotive), M&M.
On the M&HCV front, volumes increased by 16.92% y-o-y to 25,964 units as result of a low base in he corresponding month last fiscal. In October 2015, M&HCV sales were subdued as fleet owners bought vehicles in September before the implementation of the mandatory ABS in trucks which led to an increase in prices. Sales of LCV’s on the other hand registered increase in volumes by 8.84% y-o-y to 39,635 units.
In two wheelers, scooter segment continued to witness high demand in urban and semi urban clusters across the country. As a result volumes increased by 8.24% y-o-y to 568,410 units during the month. Motorcycles on the other hand had a wholesale volume growth by 7.37% y-o-y to 1,14,4516 units despite dealers maintaining huge inventory since the start of the festive