Volaris and Viva Agree to Merge, Creating Mexico’s Largest Low-Cost Airline Group 
Bridgewater Associates Plans Major Employee Ownership Expansion in Milestone Year 
Roche CEO Warns US Drug Price Deals Could Raise Costs of New Medicines in Switzerland 
Citi Appoints Ryan Ellis as Head of Markets Sales for Australia and New Zealand 
U.S. Lawmakers Urge Pentagon to Blacklist More Chinese Tech Firms Over Military Ties 
Elon Musk Wins Reinstatement of Historic Tesla Pay Package After Delaware Supreme Court Ruling 
Moore Threads Unveils New GPUs, Fuels Optimism Around China’s AI Chip Ambitions 
Apple Opens iPhone to Alternative App Stores in Japan Under New Competition Law 
TikTok U.S. Deal Advances as ByteDance Signs Binding Joint Venture Agreement 
Trump Signals Push for Lower Health Insurance Prices as ACA Premium Concerns Grow 
Seatrium Reaches $475 Million Settlement With Maersk Over Offshore Wind Vessel Project 
Uber and Baidu Partner to Test Robotaxis in the UK, Marking a New Milestone for Autonomous Ride-Hailing 
Dina Powell McCormick Resigns From Meta Board After Eight Months, May Take Advisory Role 
Elliott Management Takes $1 Billion Stake in Lululemon, Pushes for Leadership Change 
FDA Fast-Tracks Approval of Altria’s on! PLUS Nicotine Pouches Under New Pilot Program 
Google and Apple Warn U.S. Visa Holders to Avoid International Travel Amid Lengthy Embassy Delays 
Boeing Seeks FAA Emissions Waiver to Continue 777F Freighter Sales Amid Strong Cargo Demand 
Sales of sports utility vehicles (SUVs) increased in December, while small car sales declined despite significant discounts offered by Indian automakers. According to data, automakers have seen a surge in demand for premium vehicles, catering to a better-off demographic.
Maruti Suzuki and Mahindra & Mahindra Success
According to Reuters, Maruti Suzuki reported a 24% year-on-year growth in domestic SUV sales, while Mahindra & Mahindra witnessed a substantial 39% increase. Maruti's SUV segment now accounts for 36% of its domestic passenger vehicle sales, compared to 22% in the previous fiscal year, as per Archyde.
Mahindra, renowned for its Thar, Scorpio, and XUV SUV models, has experienced record-breaking sales in 2023, with a consistent monthly growth rate ranging from 20% to 57% this financial year.
Tata Motors reported an overall growth of 8% in domestic passenger vehicle sales without providing specific figures for different car categories. Among two-wheelers, Bajaj Auto and TVS Motor observed a substantial increase in domestic sales, with 26% and 27% growth, respectively. On the contrary, Eicher Motors' Royal Enfield motorcycle sales experienced a dip of 7%.
Impact of Year-End and Increased Discounts
During the year-end, automakers generally offer larger discounts; however, these discounts fail to boost entry-level vehicle sales due to low demand and inflationary pressures. Consequently, Maruti increased discounts on its lower-priced models by 40% to 45%. Alas, Maruti's small cars, such as the Alto and Baleno, witnessed a significant decline of 29%. This decline can also be attributed, in part, to Maruti's controlled wholesale activities.
Strong Demand for SUVs
Indian carmakers, especially in the SUV segment, have benefitted from robust yearly demand. SUVs accounted for almost all of Mahindra's domestic passenger vehicle sales. In contrast, SUVs constituted 36% of Maruti's domestic passenger vehicle sales this fiscal year, compared to 22% in the previous fiscal.
Two-Wheeler and Wedding Season Boost
Bajaj and other two-wheeler manufacturers experienced positive growth, with Bajaj Auto's domestic sales soaring by 26% and TVS Motor witnessing an increase of 27%. Analysts have attributed this growth to the wedding season during the month's first half.
Photo: Mahindra Newsroom
