Indian car buyers have created a record in the last financial year by purchasing the highest number of vehicles bought ever within one fiscal. With more than 42 lakh passenger cars dispatched in FY 2023-24, car sales in India soared by nine per cent during this period. One in every two car bought were SUVs, capturing half of the market share among four-wheelers. SUVs sold in India grew by around 28 per cent compared to last year, helping the segment leap to capture 50.4 per cent of the overall market share.
Mahindra leads the SUV segment share among carmakers while Maruti Suzuki is placed second with a market share of 22 per cent. Maruti fell short of achieving its target to sell one SUV out of every four cars in the last financial year. The company acknowledged the importance of gaining strength in the SUV segment to breach the 50 per cent market share in the passenger vehicle segment. Shashank Srivastava, Member of Executive Committee at Maruti Suzuki India, said, “We acknowledged the fact that gaining strength in the SUV segment is important to breach the 50 per cent market share in the passenger vehicle segment.”
Mahindra remains India’s largest SUV manufacturer with a 28 per cent increase in sales. Tata Motor saw its sales jump thanks to the popularity of its small and larger SUVs. Hyundai Motor feels SUVs continue to be the fastest growing car segment in India, with Creta and Venue being the best-selling SUVs. The market share of sedans dropped below 10 per cent for the first time in the last five years, despite the introduction of new models like Hyundai Verna and Volkswagen Virtus.
While SUVs have seen a major surge in sales in the past year, the mini and hatchback segment continues to witness a downslide, and sedan sales have flattened out. The Indian car market is seeing a significant shift towards SUVs, with manufacturers focusing more on this segment to cater to the growing demand among customers. The trend of SUVs dominating the market is likely to continue in the coming years as well, reshaping the passenger vehicle segment in India.
