It is zero discount on Creta, Thar, XUV3XO, Innova Hycross and Ertiga

Mahindra Thar Roxx, which was launched on 15th August, is having a waiting period of 6-10 weeks in the initial phase

While carmakers continue to resort to discounts and freebies to keep buyers’ interest in most of their products alive, and to boost flagging sales particularly during the festive season, that does not apply to some offerings in their portfolio. These do not come with any sort of offer attached as demand for these models outstrip supply by far. They also mostly fall in what has come to be called the sport utility vehicle (SUV) segment. Some of the vehicles bucking the downward sales trend are the Creta from Hyundai, Mahindra's Thar and XUV3XO, the Maruti Ertiga, and Toyota's Innova Hycross, as per industry observers.

According to Ravi Bhatia, managing director of auto industry data analytics firm JATO Dynamics India, “The monthly production of the waitlisted models is not aligned to their demand. Due to favourable market dynamics, auto dealers have the discretion to not offer a single rupee discount. That is primarily because prospective buyers will still book the models irrespective of their price points.”

Thanks to the exceptional sales of the aforementioned models, SUVs contributed 66 percent of the total passenger vehicles (PVs) sold during the July-September quarter of FY25, according to Society of Indian Automobile Manufacturers (SIAM). Out of 10,55,137 units of PVs sold during Q2FY25, 6,97,569 units were either SUVs or multipurpose vehicles (MPVs), as per SIAM data.

CRISIL predicts that the SUV segment will grow at over 12 percent during FY25, twice as fast as the overall PV volume growth of 5-7 percent.

The recently-listed Hyundai Motor India Limited (HMIL) had earlier announced that it managed to sell 1.1 million units of its Creta SUV since it was introduced in 2015. It faces a raft of rivals including the Seltos (from sister company Kia), Toyota Hyryder and Maruti Suzuki Grand Vitara, but the South Korean carmaker claims that its midsize SUV continues to top the sales charts in this category.

"Despite competition, the Creta has shown resilience over the past two years. Even during the last quarter, we witnessed growth in Creta sales," said Tarun Garg, the HMIL chief operating officer.

Having undergone a mid-cycle refresh in early 2024, the Creta (Rs 11 -20.30 lakh) currently has a waiting period of 3-14 weeks, as per dealer sources. JATO Dynamics revealed that Hyundai has sold 125,460 units of this model this year (until August-end).

“The model has consistently sold around 15,000 units per month, with double-digit growth this year, following a similar growth trend last year,” added Garg.

Homegrown utility vehicle maker Mahindra and Mahindra (M&M), which continues to witness an upward trend in wholesale numbers, has a huge backlog for its XUV3XO (priced in the range of 7.79-15.49 lakh) and Thar Roxx (Rs 12.99-22.49 lakh). Both SUVs, which were launched this year, continue to witness a huge retail offtake, resulting in a waiting period of six to nine weeks (depending on the variant).

“Along with the shifting preference towards SUVs, we believe our portfolio appeals to the discerning SUV buyer who is looking at an authentic SUV with the latest safety and tech features,” said Nalinikanth Gollagunta, CEO, automotive division, M&M, in response to queries sent by Moneycontrol.com.

As per S&P Mobility, new model launches have consistently proven to be pivotal in driving showroom traffic, acting as key catalysts in reviving buyer interest. Customers drawn to these new offerings are not discount seekers; rather, they are individuals willing to pay for novelty and exclusivity, prioritising innovation over value consciousness.

Toyota Kirloskar Motor recently announced the reopening of bookings for its Innova Hycross ZX & ZX (O) models, effective August 1, 2024. Having a waitlist of 40-60 weeks, the company's dealers do not see the need to offer any incentive for the hybrid MUVs, as per JATO Dynamics India.

“Owing to the high demand situation, the bookings for the top-end grades were put on hold temporarily. During this period, bookings for other grades of the Innova Hycross, both hybrid and gasoline, continued unabated. With the streamlining and enhanced supply, the waiting period has been reduced & the bookings of Innova Hycross top end grades have commenced,” Toyota Kirloskar had said in a statement earlier.

While the company didn't share the numbers, JATO Dynamics revealed that nearly 42,200 units of the model have been sold this year (until August-end).

Another Japanese carmaker, Maruti Suzuki, continues to lead in the mass-market MPV segment with the Ertiga (Rs 8.69-15.07 lakh). India’s largest carmaker sold 122,659 units of this model (until August-end). The car has a waiting period of 2-32 weeks, according to JATO Dynamics India.

An emailed query sent to Maruti Suzuki had not elicited any response at the time the story was filed.

All prices are ex-showroom, Delhi.

“Vehicles like the Thar Roxx, which has created entirely new market segments, benefited not only the respective manufacturers but also expanded the industry. These new segments boost demand and strengthen the automakers' competitive edge, positioning them to cater to discerning buyers who value distinctiveness in their automotive choices,” said Puneet Gupta, director of India and ASEAN automotive market at S&P Mobility.