The Indian auto industry grappled with the upshot of the surprise demonetisation move by the government, as witnessed in the 1.36% YoY decline in passenger vehicle sales in December 2016, but the utility vehicle segment cushioned the scope of the impact by holding ground.

The phenomenon was the most evident at country’s largest carmaker Maruti Suzuki, which witnessed an over 75 percent growth in UV sales as volumes expanded 16,072 units led by the Vitara Brezza (8,971 units), which continued to top utility vehicle sales in India. The carmaker recently announced that total bookings for its compact SUV have crossed the 200,000 unit mark. Interestingly, it is expected to add a petrol variant to the Brezza line-up sometime this year in an effort to widen its appeal.

The Hyundai Creta sold 6,563 units in December and bagged the second position. While sales declined from November 2016, the SUV has continued to be among the frontrunners for the Korean carmaker in India. In fact, till a few months ago, it was even the best-selling SUV for Hyundai in the country. The stylish SUV registered a near-40 percent increase in volumes compared with a year ago and promises to give the Brezza a tough run for its money.

The big news, though, was that the Toyota Innova jumped two spots from November 2016 to take the third position with sales of 6,552 units (November 2016: 4,934 units). Toyota’s best-seller has been well received, clocking more than 60,000 units in just seven months of its launch and continues to remain popular.

Mahindra & Mahindra’s strong but ageing warhorse, the Bolero, continued to remain in the fourth position in the Top 5 UV list with sales of 5,928 units. Surprisingly, the SUV, which is hugely popular in the rural areas, staved off concerns over demonetisation and registered a growth of 989 units from November 2016.

The Maruti Ertiga took the third spot registering sales of 5,384 units. The MPV seems to have been hit badly among the top five UVs as it slipped to the last position from the third position held in November 2016.

Interestingly, the SUV market in India is likely to double by the end of this decade and volumes are likely to cross one-million mark, Mark Fulthorpe, the Global Director, Light Vehicle Production Forecast, IHS Markit Automotive told Autocar Professional in an exclusive interview.

“We have seen a trend in India in SUVs wherein these SUVs are becoming smaller and wider. Increasingly, they are being built on uni-body vehicle structures, which are also used (as platforms) in making hatchbacks and small sedans. So there is a lot of flexibility in vehicle production. This is a strong trend in India; if this trend remains in its place, then we barely see any factor that can disrupt in the next couple of vehicle cycles. So, if you can build and sell cars in India, then you can build and sell elsewhere in the world,” he added.