Customers are flocking to buy newly-launched models, a preference that has also off-set the slide in diesel vehicle sales banned in the NCR.
New models of scooter and motorcycle, targeted at urban market, strengthened for the third consecutive quarter.
"Starting the fiscal year on a strong note, car market leader Maruti Suzuki India Ltd sold 117,045 vehicles in the domestic market in April, up 16.2 per cent from a year ago. Sales at the local arm of the Japanese carmaker were led by compact cars and utility vehicles. Sales of entry-level models such as the Wagon R and Alto fell, dropping 9.9 per cent to 31,906 units. Sales of compact car models, led by the Baleno hatchback, rose 8 per cent to 45,700 units", reports Livemint.
The sales data released by automakers outlined the changing customer preferences. The large part of sales by Maruti Suzuki comprised premium hatchbacks, sedans and utility vehicles. Until a year ago, small cars were leading the market.
"The market share of small cars fell to the lowest in five years to 20 per cent in the year to March from 30% in 2010-11, Icra Ltd said in a presentation on the passenger vehicle market trend on 28 April.
Interestingly, Renault is riding high on the success of its newly introduced model Kwid. Its sales increased twofold to 12,426 units.
Sales of diesel cars have slumped, given the ban on such vehicles. Automakers are hopeful that the 9 May Supreme Court hearing will lift the ban on registration of diesel vehicles above 2000cc in the National Capital Region.