India Auto Sales Rise 6.3% in May as Compact SUV Demand Jumps

  • Sport utility vehicle deliveries surged 36% last month
  • Passenger vehicle sales climbed to 231,640 units in May

India’s passenger vehicle sales climbed 6.3 percent in May as new compact SUVs from automakers including Maruti Suzuki India Ltd. and Mahindra & Mahindra Ltd. drew buyers to showrooms.

Deliveries of passenger vehicles, including sport utility vehicles and vans, rose to 231,640 units, the Society of Indian Automobile Manufacturers said in New Delhi Thursday. Sales have risen for 11 consecutive months in Asia’s third-biggest auto market.

Compact SUVs continue to attract buyers despite the government imposing additional levies on passenger vehicle purchases starting in April. Mahindra has introduced two new compact SUVs and added engine options to maintain its lead in a segment where competition has intensified with introductions by Maruti and Hyundai Motor Co.

Maruti’s local passenger-vehicle sales rose 11 percent, Hyundai’s deliveries gained 10 percent and Mahindra’s increased 8.3 percent. Industrywide SUV sales last month jumped 36 percent to 58,793 units.

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