Tax relief reshapes car market: Compact SUV sales surge; automakers weigh long-term demand shift

Small SUVs are surging in popularity, capturing over 30% of passenger vehicle sales post-tax cuts, as buyers opt for higher variants. While hatchbacks see a dip, industry leaders debate whether the growth is driven by SUV preference or a revival of demand among first-time buyers upgrading from two-wheelers. Maruti Suzuki highlights strong bookings for their small cars.

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