Indians still prefer cash despite rising digital payments

Utility vehicles currently parked in MSI’s garage are Brezza, Ertiga, Fronx, Grand Vitara, Jimny, S-Cross, Invicto and XL6. (Photo Credit: www.marutisuzuki.com)

Utility vehicles constituted 37 per cent of total sales of Maruti Suzuki India (MSI) in the month of January 2024. The Japanese-based automobile manufacturer registered sale of 62,038 units of utility vehicles. While, total domestic passenger vehicle sale was registered at 1.66 lakh.

Earlier, the share of this particular segment was just 23 per cent in January 2023. While, that of MSI’s mini cars was 17 per cent. In this one year period, the share of mini cars has fallen to 9.5 per cent in January 2024. While, that of utility vehicles has gone up to 37 per cent.

Utility vehicles currently parked in MSI’s garage are Brezza, Ertiga, Fronx, Grand Vitara, Jimny, S-Cross, Invicto and XL6.

While, the mini vehicles fleet of MSI currently constitute Alto and S-Presso.

Other automobile manufacturers reported robust sale of SUVs in the same month. Riding on sale of utility vehicles, both Hyundai Motor India and Toyota Kirloskar Motor reported respective highest-ever monthly sales figures in January 2024.

In an interview with The Economic Times, Sabari Manohar, Vice President, Toyota Kirloskar Motor said “The company’s MPV and SUV offerings continue to be our greatest strength with major contributions from the Innova Hycross, Urban Cruiser Hyryder, Innova Crysta, Fortuner and the Legender.” The Japanese based automotive company registered sale of 23,197 units.

While, according to Tarun Garg, COO, Hyundai Motor India, amazing response to newly launched Hyundai CRETA and SUV EXTER helped the South Korea based automajor to clock highest ever monthly sales in India.

In an interview with ET, Garg had said that Hyundai’s  53 per cent sale in 2023 was from SUVs. This is expected to only increase in the current calendar year. The automotive company has seen robust demand for sub-Rs 10 lakh utility vehicles.

Automobile manufacturers like Toyota and Hyundai have bulk of sales coming from utility vehicles.

While home-grown automobile manufacturer Mahindra & Mahindra’s and  South Korea-based Kia India’s entire vehicle range  comprises of only utility vehicles.

India’s automobile industry is witnessing a tectonic shift in sales pattern. Demand has shifted from entry level cars to utility vehicles. Realising this trend change, Maruti Suzuki quickly jumped on the bandwagon and lined up utility vehicles in the country. Its SUV share in total PV sale of the industry was around 12 per cent in FY23. But India’s largest automobile manufacturer ix expected to finish FY24 with  25  per cent share in the country’s SUV market.

Currently, SUVs collectively constitute more than half of total PV sales in the country.