SUV sales were a bright spot in Indian automakers’ October reports to dealers

(Reuters) – Some of India’s top automakers reported higher SUV sales to dealers in the October holiday period, company data showed on Friday, while the small car segment remained sluggish, highlighting growing customer preference for larger premium vehicles. .

Maruti Suzuki, India’s No. 1 car maker by market share, reported a 19.4% rise in SUV sales to a record high, while No. 2 SUV maker Mahindra and Mahindra reported their highest monthly sales in the current financial year. Increase by 25%.

Mahindra, which has a portfolio entirely of SUVs, has reported rising sales every month this year ending March 2025, largely driven by new launches such as the Thar ROXX.

Meanwhile, Hyundai Motor India reported its highest ever monthly SUV sales at 37,902 units.

Demand for new cars has slowed after two years of booming growth, forcing automakers to moderate sales to dealers and offer deeper discounts as showroom owners grapple with rising levels of unsold vehicles.

However, the month-long festive season – an auspicious time during which Indians typically make big purchases – began in early October this year, helping dealers clear out stockpiles.

In September, inventory levels reached 85 days; The recommended level is a month’s supply. Dealer inventory data for October will likely be updated next week.

Earlier this week, Maruti Suzuki said its inventory had dropped to 30 days due to higher festive discounts. The company also said its total sales rose to a record 206,434 units in October, mainly due to a jump in exports and sales to global vehicle design and manufacturing partner Toyota.

However, weak demand for small cars has impacted most of the automakers’ overall sales in the domestic market. Maruti Suzuki fell 5% on a 20% fall in small car sales, while Hyundai Motor India rose a modest 0.8%.

Tata Motors’ overall sales in the domestic market, which accounts for about two-thirds of its sales from SUVs, remained stagnant due to stiff competition from Mahindra.

(Reporting by Meenakshi Maidas and Nandan Mandayam in Bengaluru; Editing by Janan Venkatraman)