Indian automakers Maruti Suzuki and Mahindra & Mahindra recorded robust growth in sales to domestic dealers in December, driven by strong demand for sport utility vehicles (SUVs) and year-end discounts. Maruti Suzuki also achieved a notable resurgence in its small-car segment, posting its first growth in 20 months, according to company data released Wednesday.
Market leader Maruti Suzuki reported a 24% rise in domestic sales, propelled by a 29% jump in its hatchback sales, which include the popular Swift and Alto 800 models. The company noted that despite SUVs dominating the Indian auto market—accounting for over 50% of sales—small cars remain a significant contributor, comprising half of Maruti’s sales volumes in the current fiscal year. Partho Banerjee, Maruti’s head of marketing and sales, highlighted that hatchbacks secured the top three sales spots in December, buoyed by attractive discounts and steady demand.
Mahindra & Mahindra, India’s second-largest SUV maker by market share, saw a 16% increase in overall sales, with SUV sales surging 18%. The company’s strong performance has been attributed to the high demand for its latest models like the Thar ROXX and XUV 3X0, which have resonated well with consumers despite a broader market slowdown.
Tata Motors also reported a modest 2% growth in December sales, bolstered by steady demand across its product portfolio.
Meanwhile, Hyundai Motor India faced challenges, with domestic sales falling by 1.3%, marking its second consecutive monthly decline. Analysts pointed to intensified competition, particularly from Mahindra’s newly launched XUV 3X0, which has attracted a segment of Hyundai’s SUV customers.
After two years of robust growth, Indian carmakers struggled through much of 2024 amid subdued demand and rising costs, prompting aggressive discounting to revive sales. However, the industry is optimistic about a rebound in 2025, fueled by upcoming vehicle launches.
Adding to the momentum, Maruti, Mahindra, and Hyundai each announced price hikes effective January, aimed at offsetting rising input costs and positioning for sustained growth in the new year.