Utility vehicles sales began the new fiscal on a positive note, growing 13.71 percent to 70,691 units in April.

The popularity of SUVs continued to surge – led by the Maruti Vitara Brezza – which was the highest selling utility vehicle in the month with volumes to the tune of 10,653 units, up 36 percent year-on-year. The Brezza commands a waiting period of five months with higher trims having an even longer waiting period at some dealerships.

The Hyundai Creta clinched the second position in April with sales of 9,213 units. The SUV has contributed handsomely to Hyundai's volumes and continues to remain hugely popular. In fact, the Korean carmaker expanded the Creta SUV range with the introduction of three new variants in early April. Additionally, it also updated the SUV's 7.0-inch touchscreen infotainment system with Apple CarPlay, Android Auto, and MirrorLink connectivity. The SUV has registered a 17 percent increase in volumes from a year ago.

Maruti's Ertiga drives in next with sales of 6,742 units. Sales of the MPV have gained pace in the last few months.

The Toyota Innova Crysta was the fourth best-selling utility vehicle in April as volumes touched 6,589 units. Interestingly, the Crysta has generated the highest revenue of any car model in India in the previous fiscal. It is estimated to have generated Rs 13,445 crore for Toyota in 2016-17, according to the carmaker. The company recently expanded its Innova Crysta line-up with the launch of the new rugged-looking Touring Sport.  

Mahindra & Mahindra sold 6,358 units of its ageing warhorse, the Bolero. Sales, however, have been on the decline for the SUV as it has seen strong competition from vehicles like the Creta and Duster.

Large SUVs are likely to see a decline in prices after the implementation of the Goods & Service Tax in the country. This is because luxury cars and SUVs (engines larger than 1,500cc) see a considerable reduction in indirect taxes from an earlier 50 percent to 43 percent (GST of 28 percent plus cess of 15 percent).  Meanwhile, prices of midsize cars and SUVs (length more than four metres, engines smaller than 1,500cc) are likely to remain more or less unchanged as their tax incidence with a net rate of 43 percent.