Entry-level vehicles' share in PV sales hits record low

Continued decline hints at major shift in buyer preferences, uneven income recovery

- Alisha Sachdev

In a record quarter for passenger vehicle (PV) sales, the share of micro and mini cars in the small-car segment hit an all-time low, hinting at a significant shift in buyer preferences and a modest, uneven income recovery at the lower end of the economic spectrum following the covid-19 pandemic.

In the second quarter of FY24 sales of small cars less than 3.6 metres in length fell 54.5% from 77,000 units a year ago to just 35,000 units, while sales of sport utility vehicles (SUVs) and multiutility vehicles (MUVS) continued to rise, accounting for 60% of passenger vehicle sales.

Compared to the peak of FY19, small car sales in the September quarter were 75% lower, according to data released by apex industry body the Society of Indian Automobile Manufacturers (Siam) on Monday. Siam considers factory-gate dispatches reported by automakers as sales.

Sales of entry-level motorcycles in the 110cc and below segment dropped to their lowest point at just 1.4 million units, down 39% from the peak of 2.3 million in Q2 2018-19.