Due to the decline in sales, companies like Nissan, Honda and Volkswagen have decided to stop production of small vehicles. Whereas Maruti Suzuki is still on this path.
on one side whereCompanies are launching more and more new vehicles, while on the other hand the sale of mini cars is decreasing. In the financial year 2022, the sale of mini cars decreased to 11.5 lakh units. At the same time, the year 2019 was the best for the sale of mini cars, during which 15.5 lakh small cars were sold. Considering this as peak, in the year 2023, the sale of mini cars has decreased by about 2 lakh units. Till March 31, auto companies have sold only 13.4 mini cars.
Government of India recentlyhave been implemented. Because of this, car companies have had to make some changes in their vehicles. The result was that even the small cars available at cheap prices have now become expensive. Due to this, the sale of small cars has decreased. Many car companies are struggling with this shortfall in sales and some have discontinued their popular cars. However, to overcome this situation, Maruti Suzuki has found a different way.
Maruti Suzuki still trusts mini cars
It is the largest selling company of small cars in India. Most of its executives believe that mini cars are a sustainable option for car buyers in the long run. In terms of safety, the company still wants to bet on mini cars. According to the company, some entry-level updates are needed in these cars.
It is obvious that the prices of petrol and diesel are increasing and pollution is also increasing due to them. In such a situation, the government is encouraging local auto companies to make cars with alternative engines. Here, alternative engines mean cars that come with flex fuel, biogas or electric powertrains. Since small cars give good mileage, they can also be placed in this segment.
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Why the sale of small cars is decreasing
There are many reasons for the decline in the sales of mini cars in the Indian market. As-
- increase in manufacturing cost
- Increase in road tax by the state governments
- Changes made due to safety rules
- Necessary updates in vehicles due to new emission norms
- Finding SUVs at affordable prices
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Mini car sales may increase gradually
Apart from this, even though the sale of mini cars has decreased from the peak. But still this figure is better than last year. Most people going to buy a car for the first time spend money on small vehicles only. Vehicle sales account for about 48 percent of this. This trend has been going on for many years. The same giant company like Maruti is still relying on small cars.