Small (car) is beautiful

The Indian passenger vehicle industry has had a stellar year. In 2023-24 (FY24), PV sales grew up by an impressive 9 per cent. Carmakers are now trying to assess where the next spurt of growth can come from. Will it be from small towns? Will it be from small electric vehicle (EV) buyers? “Smaller towns the next pit stop for carmakers”, read one headline (Business Standard, March 18, 2024). “JSW MG Motor eyes a ‘Maruti moment’”, read another (Business Standard, March 21, 2024).

If you look at the sales numbers of various models, they tell an interesting story. SUVs have