Speed Bumps Ahead: Mini Car Sales Hit A Decline In Market Landscape

Auto Written by
Speed Bumps Ahead: Mini Car Sales Hit A Decline In Market Landscape

Speed Bumps Ahead: Mini Car Sales Hit A Decline In Market Landscape

The mini car segment, encompassing models like Maruti Suzuki”s Alto and S-Presso, as well as Renault”s Kwid, witnessed a substantial year-on-year decline in domestic sales from April to September. In contrast, the sale of compact sports utility vehicles (SUVs) experienced an 18% year-on-year growth, reaching 5,93,230 units in the first half of the current year. During the past six months, domestic sales of mini cars plummeted by 41% year-on-year, totalling 78,170 units compared to 1,32,236 units in the same period last year. Maruti Suzuki India (MSIL) sold 72,550 units during April-September 2023, in contrast to 1,21,056 units in the corresponding period of 2022, while Renault India recorded sales of only 5,620 units, down from 11,180 units in April-September 2022.

Monthly sales data from MSIL in September reported a 65% decline compared to the same month in the previous year, with 10,351 units sold. The sale of Renault”s Kwid also experienced a year-on-year decline of around 63%, reaching 747 units in September 2023 compared to 2,001 units in September 2022.

Analysing the broader passenger vehicle (PV) market, all segments, except SUVs and multi-purpose vehicles (MPVs), recorded a decline in the first half of the year. Hatchbacks saw a 9% year-on-year decline, sedans dropped by three percent, and vans decreased by two percent. The discontinuation of the Alto 800 contributed to a more pronounced decline in the smaller hatchback segment. Shashank Srivastava, Senior Executive Officer, Marketing and Sales at MSIL, explained that the industry observed an inventory correction in the small car segment. As the semiconductor situation improved, original equipment manufacturers (OEMs) were able to increase the production of larger cars.

In the compact SUV segment, MSIL led with the highest number of units sold at 1,58,009, followed by Tata Motors at 1,51,601 units, and Mahindra & Mahindra at 1,18,035 units. Hyundai Motor India”s Exter also witnessed growth in the compact SUV segment, with sales reaching 88,452 units in the first half of this year, compared to 61,286 units in the same period of 2022.

The mini car segment, represented by models like Maruti Suzuki”s Alto, S-Presso, and Renault”s Kwid, has faced a substantial setback in domestic sales during the April-September period, experiencing a significant year-on-year decline. This decline is in stark contrast to the growth observed in the sale of compact sports utility vehicles (SUVs), which increased by 18% year-on-year, emphasizing the evolving preferences and demands of consumers.

Maruti Suzuki India (MSIL) and Renault India both reported notable reductions in mini car sales, reflecting broader challenges in this segment. The smaller hatchback category, particularly impacted by the discontinuation of the Alto 800, witnessed a more pronounced decline. However, the industry has seen a correction in inventory for small cars, and with semiconductor supply chain challenges easing, manufacturers have been able to enhance the production of larger cars.