India's utility vehicles sales rise in December, demand for entry-level cars muted

India's top automakers in December reported a double-digit rise in the sale of the more expensive utility vehicles, while entry-level cars saw muted demand despite discounts.

Auto sales numbers are keenly watched as they are among the key indicators for assessing private consumption, which has more than 50 per cent weightage in calculating the country's economic growth.

Utility vehicles (UV), among the fastest-growing segments, saw a 22.3 per cent rise in sales at Maruti Suzuki India and 62.2 per cent at Mahindra and Mahindra.

Utility vehicles have grown more popular among buyers this year, nearly matching production volumes of entry-level cars and sedans, according to the Society of Indian Automobile Manufacturers.

"Discounts have been higher in the entry level because their demand has been relatively weaker. There is also high inventory," said Jay Kale, senior vice president, Elara Securities.

While India's retail inflation eased below the central bank's upper tolerance level for the first time this year in November, latest unemployment data showed joblessness rose to a 16-month high.

"The price hikes that auto companies have done is a huge jump for buyers in lower-to-middle income brackets," said Mansi Lall, research analyst at Prabhudas Lilladher.

Hero MotoCorp, the world's largest bikemaker, reported a marginal fall in sales, while Bajaj Auto's two-wheeler sales dropped 22 per cent. Sales of TVS Motor Co's two-wheelers also fell 3.3 per cent.

Tractors sales, which indicate demand in rural economy and the state of farm incomes, were up by 27.2 per cent at Mahindra and 18.7 per cent at Escorts Kubota.

The commercial vehicles (CV) segment reported a double-digit growth for December, with sales at industry leaders Eicher Motors and Ashok Leyland rising 17.3 per cent and 44.9 per cent, respectively.

Below is the list of sales figures from some of India's leading auto companies that have reported so far:

Maruti Suzuki India - 139,347 units, down 9 per cent

Mahindra & Mahindra Auto - 56,677 units, up 44.7 per cent

Mahindra & Mahindra Farm Equipment - 23,243 units, up 27.2 per cent

Tata Motors (total domestic) - 72,997 units, up 10.1 per cent

Bajaj Auto - 281,486 units, down 22.3 per cent

Eicher Motors Trucks & Buses - 7,221 units, up 17.3 per cent

Eicher Motors Motorcycles - 68,400 units, down 7.2 per cent

Ashok Leyland - 18,138 units, up 44.9 per cent

Hero MotoCorp - 394,179, down 0.2 per cent