Indian carmakers experienced a significant boost in sales during October, driven by surging demand for sports utility vehicles (SUVs) amid the festive season. However, small-car sales remained sluggish, underscoring an ongoing shift in consumer preference towards larger and more premium vehicles.

Maruti Suzuki, Mahindra, and Hyundai Report Record SUV Sales

Maruti Suzuki, India's top carmaker, reported a notable 19.4% jump in SUV sales, hitting a record high. Their SUVs, which include popular models like the Grand Vitara, have driven growth even as small-car sales declined. Maruti's total sales reached an impressive 206,434 units in October, boosted not only by SUVs but also by increased exports and collaboration with Toyota.

Mahindra & Mahindra, known exclusively for its SUV lineup, enjoyed a 25% sales increase, marking the highest monthly sales in the current fiscal year. The company’s new launches, such as the "Thar ROXX," have been especially popular, and Mahindra has consistently posted sales growth throughout 2024, with SUVs like the Scorpio and XUV700 topping the charts.

Hyundai Motor India also reported its highest-ever monthly SUV sales, totaling 37,902 units, which included record-breaking sales of the popular Hyundai Creta at 17,497 units. Tarun Garg, Hyundai Motor India’s Chief Operating Officer, highlighted the strong demand for their SUV portfolio, which represents over 68% of Hyundai’s total monthly sales.

Tata Motors and MG Motor Join the SUV Trend

Tata Motors saw flat sales in October, mainly due to intense competition in the SUV sector. Tata’s lineup, comprising popular SUVs like the Harrier and Nexon, contributed to about two-thirds of its sales volume. Despite a minor dip in overall domestic and international sales, Tata remains a major player in the growing SUV segment.

JSW MG Motor India posted a remarkable 31% increase in wholesales year-over-year, with over 70% of its sales attributed to new energy vehicles (NEVs). The newly launched electric crossover, Windsor, captured immediate market interest, recording 3,116 units in its debut month. MG Motor’s focus on NEVs aligns with India's gradual shift towards sustainable automotive solutions.

Honda’s Sales Dip as Small Cars Struggle

In contrast to the SUV boom, Honda Cars India faced a 23% decline in total sales. The company’s small car lineup underperformed, with domestic sales down by 41% compared to last year. However, festive season momentum spurred dealership deliveries across models, including Honda’s compact sedans and hatchbacks. Honda Cars India’s Vice President, Kunal Behl, noted that aligning production and inventory with demand has positioned Honda well to recover in the coming months.

Festival Season Lifts Dealer Sales but Leaves Small Cars Behind

October’s festive period, marked by Navratri, Durga Puja, Dussehra, Dhanteras, and Diwali, proved crucial for dealerships as consumers sought big-ticket purchases during this auspicious time. These celebrations helped clear inventory that had reached high levels in previous months, enabling companies to moderate production and maintain momentum into the year-end. However, the disparity in demand between SUVs and small cars continued, highlighting a shift in Indian consumer preference towards larger, feature-rich vehicles.

With this trend, Indian carmakers are strategically expanding their SUV offerings to cater to a market that increasingly values premium and versatile vehicles over compact models, setting the stage for further growth in the SUV segment.