Carmakers are currently facing a unique situation where the demand for certain models is surpassing the supply. This has resulted in zero discounts being offered on popular SUVs like the Hyundai Creta, Mahindra Thar, XUV3XO, Toyota Innova Hycross, and Maruti Ertiga.

Experts in the industry have observed that the production of these high-demand vehicles is not keeping up with consumer interest, allowing dealers to maintain pricing without offering any incentives. Ravi Bhatia, the managing director of JATO Dynamics India, has noted that despite the price, prospective buyers are still willing to book these models.

This trend has led to SUVs accounting for 66 percent of total passenger vehicle sales in India during the July-September quarter of FY25, as reported by the Society of Indian Automobile Manufacturers (SIAM). Out of the 1,055,137 passenger vehicles sold in Q2FY25, 697,569 were either SUVs or multipurpose vehicles, highlighting the strong performance of this segment in the automotive market.