Maruti Suzuki small car sales rise thanks to strong rural demand

Maruti Suzuki witnessed around a 10 percent rise in sales of its entry-level models in October 2024. The company’s small car line-up includes models such as the S Presso, Alto K10, Celerio and the popular Wagon R, which are sold via the brand’s Arena dealerships.    

1. Affordability is a major factor impacting small car sales
2. Small car sales have been on a decline in India since the pandemic
3. Maruti’s small car sales grew 12 percent in April-October 

Maruti small car sales fueled by rural demand 

The sales growth reflects strong consumer sentiments in the country’s rural parts, while there is a weakness in the urban markets, according to the brand. “In the first quarter, we saw a decline. But we were able to arrest the decline in the second quarter with sales remaining the same. We saw good traction in October, with a growth of almost 10 percent,” the senior executive officer for marketing and sales, Partho Banerjee, told our sister publication, Autocar Professional.

India’s small and affordable car market has been declining since the pandemic, with entry-level hatchbacks losing their market share steadily. SUVs are now driving the overall passenger vehicles industry sales, accounting for around 50 percent of the volumes.

Affordability is the biggest factor that impacts the sales of small cars, and the rural market, which accounts for a significant share of their sales, is now gradually recovering. “Rural did pretty well in October. We had a strong growth of 31 percent in the rural market last month, while between April and October, we had a growth of 12 percent,” Banerjee said.

Maruti Suzuki recently highlighted the stress in the urban market. The recent monthly economic survey by the finance ministry has also pointed out a slowdown in overall urban demand, while rural consumption is witnessing some revival.

Banerjee had said that the automaker witnessed growth of around 8 percent in the rural market during the first half of the financial year, while the urban market declined by 2 percent. The weakness in the urban market can be attributed to factors such as the impact of several state elections and heavy monsoons in certain areas. Heat waves in the earlier part of the financial year also affected the traffic across dealerships.

Maruti e Vitara launch by March 2025 

Maruti Suzuki will launch its first electric vehicle, the e Vitara, in March next year. The born-electric SUV made its global debut recently and will also spawn a Toyota-badged derivative that will go on sale a little later.

With inputs from Yukta Mudgal