The mini car segment, comprising Maruti Suzuki’s Alto and S-Presso and Renault’s Kwid, has fallen drastically on a year-on-year (y-o-y) basis in domestic sales (dispatches to dealers) in the April-September period. On the other hand, the sale of compact sports utility vehicles (SUVs) has grown as the trend and demand for SUVs continues in the market. For instance, the sale of compact SUVs grew 18 per cent y-o-y to 5,93,230 units during the first half of this year, compared to 5,03,585 units in the April-September period last year.
In the last six months, domestic sales of the mini segment declined 41 per cent y-o-y to 78,170 units, compared to 1,32,236 units in April-September 2022. In the April-September period, while Maruti Suzuki India (MSIL) sold 72,550 units compared to 1,21,056 units in the corresponding period last year, Renault India sold only 5,620 units against 11,180 units in April-September 2022.
According to the latest data by the Society of Indian Automobile Manufacturers (SIAM), in monthly sales, too, MSIL sold 10,351 units in September, which is a decline of 65 per cent y-o-y, compared to 29,574 units in the same month last year.
Sale of Kwid by Renault India also declined by around 63 per cent y-o-y to 747 units during last month, against 2,001 units in September 2022.
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“In the first half, all segments of passenger vehicles (PV) declined, except SUV and multi-purpose vehicle (MPV). Hatchback segment declined 9 per cent y-o-y, sedans by three per cent, and vans by two per cent. The smaller hatch has seen a greater decline due to the discontinuation of the Alto 800, which had a substantial volume last year. Also, the industry has seen inventory correction in the small car segment; with the semiconductor situation easing, original equipment manufacturers (OEMs) have been able to ramp up the production of larger cars,” Shashank Srivastava, Senior Executive Officer, Marketing and Sales, MSIL, told businessline.
In the compact SUV segment, PV market leader MSIL sold the highest number of units at 1,58,009, followed by Tata Motors at 1,51,601 units and Mahindra & Mahindra at 1,18,035. Hyundai Motor India’s Exter also saw growth in the compact SUV segment at 88,452 units during H1 this year, compared to 61,286 units in H1 2022.
“Exter, Venue and Creta continue to receive overwhelming customer response. Dealer inventory now stands at a healthy 20 to 25 days that is optimal keeping in view the upcoming Dhanteras and Diwali festivals,” said Tarun Garg, Chief Operating Officer at HMIL.