(Reuters) – Indian carmakers Mahindra & Mahindra and Tata Motors reported a rise in sales to domestic dealers in December on steady sport utility vehicle demand, while year-end discounts helped Maruti Suzuki record its first small-car sales growth in 20 months, company data showed.
Market leader Maruti Suzuki’s domestic sales rose 24% in December and Mahindra & Mahindra clocked a 16% jump, the two companies reported on Wednesday.
Sales for Maruti’s small cars, which include the ‘Swift’ and ‘Alto 800’ models known as “hatchbacks”, rose 29% in December.
While SUVs are currently India’s favourite choice of cars – forming a little over 50% of sales – the small car segment remains key for Maruti, contributing 50% to its sales volumes in its current fiscal year.
The top three spots for Maruti have been taken by hatchbacks in December, which has done better numbers, Partho Banerjee, head of marketing and sales at Maruti said in a monthly sales call.
After two years of rapid growth, Indian automakers came under pressure through most of 2024 due to sluggish demand for new cars and rising costs, forcing them to offer larger discounts.
Analysts expect some growth to return with a series of launches slated to kick off later this month.
Mahindra, India’s second-biggest SUV maker by market share, has remained resilient amid the slowdown. Its SUV sales jumped 18%, with analysts attributing that to demand outpacing supply for its newer SUV models, such as the ‘Thar ROXX’ and the ‘XUV 3X0’.
However, Hyundai Motor India continued to face heat from competition, with domestic sales dropping 1.3% in December, its second straight monthly drop. Tata Motors reported a 2% rise.
The two have lost SUV customers to one of Mahindra’s latest entrants in the SUV segment, the ‘XUV 3X0’, analysts said.
Last month, Maruti, Mahindra and Hyundai Motor India each revealed plans to increase prices starting January.
Reporting by Nandan Mandayam in Bengaluru; Editing by Janane Venkatraman
