New Delhi, Dec. 15 -- The tax cut was supposed to be a lifeline. It wasn't. Despite a sharp GST reduction and hefty festive discounts, India's smallest cars-think Alto, Kwid, S-Presso-are still stuck in slow gear. Buyers, it turns out, are happily stretching budgets for compact SUVs. October-November sales data tells the story: mini cars grew just 3%, while compact SUVs zoomed ahead with 17% growth.
So what's really going on? Is price no longer king? Or have aspirations decisively overtaken affordability?
This shift has sharpened a policy tug-of-war. As new emission norms loom, Maruti Suzuki wants extra relief for ultra-light small cars to keep them viable. Rivals like Tata Motors and Hyundai argue the market has spoken-and it's choosing ...