India's growing love for SUVs keeps February meter running for auto firms

India’s growing love for SUVs keeps February meter running for auto firms

Indian auto companies continued to report a steady rise in sales in February, buoyed by demand for two-wheelers and utility vehicles.

Tata Motors reported a 19% year-on-year rise in its passenger vehicle (PV) sales for the month, higher than the 12% rise in January, while Toyota’s Indian unit posted record sales for the second consecutive month at 25,220 units, up almost 61% from last year.

Its sports utility vehicles (SUV) and multi-utility vehicle models were “at the forefront of this demand surge”, said Toyota.

Analysts noted that the volume rise in PVs such as sedans, SUVs and others was likely due to high inventory levels and a rise in discounts.

Mahindra and Mahindra, one of India’s largest SUV makers by revenue, said its SUV sales rose 40% in February, pushing total sales up 24%.

Maruti Suzuki India Ltd.’s dispatches rose 15% to 1.97 lakh units in February as exports jumped and utility vehicle sales maintained a healthy momentum.

Domestic two-wheeler (2W) sales also rose, supported by improved demand and new product launches. Analysts expect healthy momentum to persist in the absence of a price hike for at least three months.

Eicher Motors’ premium motorcycle Royal Enfield sold 75,935 units in the month from 71,544 units a year ago. It reported an uptick of 2% in the sale of motorcycles with an engine capacity of up to 350cc, compared to a 1% fall in January.

Bajaj Auto’s total 2W sales for the month rose 25% to 294,684 units.

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