Indians bought more cars in FY2023–24 than ever before. Half of them were SUVs

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. What drove the sales of cars up massively are sport utility vehicles (SUVs) which have become immensely popular among Indian customers. One in every two car bought during this period were SUVs, capturing half of the market share among passenger four-wheelers.

SUVs sold in India grew by around 28 per cent compared to last year. From a 43 per cent market share, the rise in sales helped 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.

India's largest carmaker has almost doubled the sale of its SUVs, which include the likes of Brezza, Fronx, Grand Vitara and Jimny. Brezza was among the top three SUVs sold in India in the last 12 months. However, Maruti fell short of achieving its target to sell one SUV out of every four cars in the last financial year. From a household name in mini and small hatchbacks, the carmaker has shifted focus to the SUV segment for a larger market share. 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. The company, which manufactures SUVs like Scorpio-N, XUV700, Thar and XUV300, found 4.59 lakh takers in the last 12 months. Tata Motor too saw its sales jump thanks to the popularity of its small SUVs likes the Punch and Nexon, also aided by larger SUVs like Harrier and Safari. Hyundai Motor, which saw growth in the rural segment last year, also feels SUVs continue to be the fastest growing car segment in India. Creta and Venue are the two best-selling SUVs from the Korean auto giant.

The market share currently enjoyed by sedans was inversely proportional to the mini and small hatchback segment around five years ago. From nearly 47 market share, the segment has now dropped to around 28 per cent. Largest hatchback manufacturers like Maruti Suzuki and Hyundai Motor continue to witness downslide in sales of hatchbacks. In the last 12 months, the segment witnessed a drop of 12 per cent in sales.

Things have not changed much in the sedan segment despite the introduction of some exciting models like the new Hyundai Verna, Volkswagen Virtus and Skoda Slavia. The sedan segment witnessed a marginal rise of six per cent as its market share dropping below 10 per cent for the first time in last five years.