SUV Demand Fuels Growth Amid Mixed Performance in Four-Wheeler Market

The four-wheeler market showed a mixed performance in March, with strong demand for SUVs driving growth, even as some segments faced challenges. 

Maruti Suzuki Ltd., India’s largest carmaker, reported a 17% rise in vehicle production to 194,901 units in March. However, its domestic sales dipped slightly by 0.8% to 160,016 units, while exports surged 27% to 32,968 units. For FY25, Maruti Suzuki sold 2.23 million units, marking a 4.6% year-on-year increase, despite continued weakness in the passenger car segment as consumer preferences shifted toward utility vehicles. Sales in the mini and compact car segments declined, while UV sales grew 4.6% in March.

Hyundai Motor India also highlighted the growing dominance of SUVs in its portfolio. The company sold a total of 762,052 units in FY25, including 598,666 domestic sales and 163,386 exports. In March alone, Hyundai’s total sales rose 2.6% year-on-year to 67,320 units. The Hyundai CRETA emerged as the best-selling SUV in India during January-March, with SUVs accounting for 68.5% of Hyundai's domestic sales for FY25.

Tata Motors reported a marginal decline in total domestic dispatches for March at 90,500 units compared to the same month last year. However, the company saw a robust 17% month-on-month increase in domestic sales for March. In the passenger vehicle segment, Tata Motors achieved a modest 3% growth in domestic sales to 51,616 units. Passenger electric vehicle sales faced a significant drop of nearly 21% year-on-year.

Mahindra & Mahindra posted strong growth on the back of SUV and commercial vehicle sales. The company sold 48,048 SUVs in March, an 18% increase from the same period last year. For FY25, M&M recorded its highest-ever domestic SUV sales at 551,487 units, reflecting a 20% year-on-year growth. Commercial vehicle sales also rose by 14.4%, with March dispatches totalling 23,951 units.

Eicher Motors, through its joint venture with Volvo Group, saw growth in its commercial vehicle segment as well. Wholesale volumes rose by 7.6% year-on-year in March, with despatches of 11,852 trucks and buses during the month—an 8% rise compared to March last year.

The data underscores the growing consumer preference for SUVs across brands while highlighting challenges in other segments such as passenger cars and EVs.