Mahindra & Mahindra Ltd, a leading force in the Indian automotive industry, announced a significant surge in SUV sales for the month of October. The company reported a robust 25% year-on-year growth in domestic SUV sales, selling an impressive 54,504 units. This strong performance propelled the company’s overall auto sales, including exports, to a record high of 96,648 units, marking a 20% growth compared to the previous year.
This impressive performance is a testament to the growing demand for SUVs in the Indian market, driven by a combination of factors. The festive season, known for its celebratory spirit and increased consumer spending, undoubtedly played a significant role in boosting sales. Moreover, rising private consumption, fueled by economic recovery and a growing middle class, has contributed to the surge in demand for vehicles.
Veejay Nakra, President of the Automotive Division at M&M Ltd., expressed his delight with the company’s record-breaking performance. “We are excited to have clocked the highest-ever SUV sales of 54,504 vehicles in October, a growth of 25 per cent and highest ever total volume of 96,648, a growth of 20 per cent,” he stated.
Adding to the company’s success story, the Thar ROXX, a popular SUV model, garnered an impressive 1.7 lakh bookings within the first 60 minutes of its launch. This remarkable achievement showcases the strong appeal and demand for Mahindra’s vehicles among Indian consumers.
Looking at the broader market dynamics, the rise in auto loans is indicative of growing consumer confidence and willingness to invest in personal vehicles. The surge in auto loans, particularly for car ownership, signifies a trend where individuals are embracing longer-tenure financing options to afford newer vehicles. This trend is evident in tier 2 and 3 cities and beyond, further emphasizing the expanding demand for automobiles across the country. It is worth noting that approximately 80% of car purchases in India are financed through bank loans or non-banking financial companies (NBFCs).
Mahindra’s strong performance in October reflects the positive outlook for the Indian automotive industry. With a favorable economic climate and a growing middle class, the demand for vehicles is expected to remain robust, driving further growth in the coming months.
