MUMBAI: In a mixed outcome for India’s auto sector this October, Mahindra & Mahindra (M&M) achieved record-breaking sales, fueled by strong demand for its SUVs, while Tata Motors witnessed a slight decline, underscoring varied consumer preferences amid the festive buying season.
M&M reported a significant 32 per cent rise in its overall sales figures, with total revenues reaching Rs1,500 crore for October, marking its highest monthly sales performance to date.
Much of this growth was attributed to the popularity of M&M’s flagship models such as the XUV700 and Thar, which have continued to draw enthusiastic interest from buyers seeking high-performance SUVs with modern features.
The company’s recent focus on expanding its SUV lineup and enhancing customer engagement during festive sales has paid off, solidifying its position as a preferred brand in the SUV segment.
Festive season sales
The festive season has typically been a time of heightened sales in India’s automotive market as consumer spending peaks. For M&M, this season brought in even stronger numbers, bolstered by extensive promotional campaigns and financing options aimed at attracting a wide customer base.
Rajesh Jejurikar, Executive Director, M&M, said that the company’s results showcase the continued appeal of their products, with plans underway to increase production to keep up with rising demand.
In contrast, Tata Motors experienced a modest dip in sales, recording a 2.5 per cent decline to Rs1,200 crore in October compared to the previous year.
Despite ongoing demand for popular models like the Nexon and Punch, Tata’s sales slowdown is reflective of a broader market trend impacted by economic uncertainties and changing consumer preferences.
Tata focus on EV
Tata Motors’ focus remains on its compact and electric vehicles, which have shown steady growth, although the overall sales numbers saw a minor setback.
Analysts attribute Tata’s performance partly to the shift in consumer focus toward larger SUVs, an area where M&M has maintained a competitive edge. Tata’s emphasis on compact cars and EVs suggests a different strategic approach, yet the slight dip in October highlights the need for further alignment with current buyer preferences.
As India’s auto market emerges from the pandemic era, fluctuating economic factors continue to shape consumer buying patterns, with interest rate hikes and inflation impacting vehicle affordability.
However, industry observers remain optimistic about growth in the sector, especially with expected government incentives for EVs and infrastructure upgrades. Both M&M and Tata Motors are actively navigating these conditions, with M&M riding high on its SUV sales boom, while Tata refines its market strategy to counter short-term dips and capitalize on the long-term EV trend.
