Small car sales in India fell in December last year. On the contrary, the sale of luxury vehicles such as Sports Utility Vehicles or SUVs has increased in that country. Reuters reported this news on Monday (January 1) with reference to the information given by the Indian car manufacturers.
According to reports, entry-level small car sales in December were mainly due to high inflation. However, many products have gone beyond the reach of common people. Although this has affected small cars, sales of luxury cars have increased. Because while common people are suffering from inflation, the rich are not affected by it.
The demand for SUVs in the country’s market was huge throughout the last year. Maruti Suzuki and Mahindra & Mahindra’s SUV sales in the Indian market grew by 24 percent and 39 percent, respectively, year-on-year. Mahindra, the SUV maker of the Thar, Scorpio and XUV models, had announced record vehicle sales at various points in 2023. The company’s sales have grown by 20 percent to 57 percent per month so far in the current fiscal year.
Meanwhile, SUVs accounted for 36 percent of Maruti’s passenger car sales during the same period. Where the previous year this rate was 22 percent.
In terms of two-wheelers, sales of Bajaj Auto and TVS Motors in India’s domestic market jumped by 26 percent and 27 percent respectively. However, Eicher Motors’ Royal Enfield motorcycle sales fell by 7 percent.