126921Landlords gain from rental yield increase, tenants’ budget gets spoiled!

People have literally given up on purchase of entry level cars in India. Automobile companies are having a rough time in sale of small cars. The share of entry level cars in total passenger vehicle sale is continuously shrinking in the country. In Decemmber 2023, India’s biggest automobile manufacturer, Maruti Suzuki India (MSI) could sell only 2,557 units of Alto and S-Presso. These two vehicles constitute its mini car segment. MSI registered total sale of 1.04 lakh units of passenger vehicles (PV) in December.  Mini cars constituted mere 2.4 per cent of total PV sales of the Japanese automobile manufacturer.

Maruti Suzuki is constantly facing shrinkage of share of mini car segment in its total PV sales.Even on year-on-year (YoY) basis, sale of vehicles belonging to this particular segment has fallen one-fourth to 2,557 units in December 2023 from 9,765 units in December 2022.

While, over the years share of utility vehicles in MSI’s total PV sales has continuously risen.  Back in December 2010, utility vehicles sales comprised less than one per cent of total PV sales. And by December 2023, this particular segment comprised 43 per cent of total sales. In year ago period, utility vehicle segment’s share comprised of 29 per cent.

Currently, MSI’s utility vehicle segment comprises of Brezza, Ertiga, Fronx, Grand Vitara, Invicto, Jimny, S-Cross and XL6.

Realising this changing consumer preference towards SUVs in India’s automobile industry, Maruti Suzuki jumped on the bandwagon of companies that are lining up with SUVs. In FY24, so far, MSI has already captured 22 per cent of market share in the SUV segment.

Going forward, the Japanese automotive company is committed to drive in a lineup of SUVs.