India’s enduring fascination for sport-utility autos (SUVs) is displaying no indicators of slowing down, fuelled by their practicality, spacious interiors, perceived security, and an ever-expanding lineup of recent fashions to entice consumers.
About 16 passenger automobile fashions crossed the 100,000-unit gross sales mark every in calendar yr 2023. Greater than half of them had been SUVs.
Maruti Brezza and Grand Vitara, Tata Nexon and Punch, Hyundai Creta and Venue, Kia Seltos, Mahindra Scorpio and Bolero/Neo figured amongst SUV fashions that hit a brand new gross sales milestone in 2023. The pattern is more likely to proceed with a number of of the most recent SUV fashions proving to be instantaneous hits, in response to Jato Dynamics knowledge.
The elevated give attention to SUVs displays a significant shift within the Indian passenger automobile market within the final 5 years. Demand for hatchbacks and sedans have fallen sharply, with greater than half of recent automobile consumers preferring SUVs. Multipurpose autos, the workhorses of Indian households, have maintained a gradual 12% share.
This important change in client desire is especially prevalent in entry-level SUVs the place gross sales breached the one-million-unit market in CY2023.
Shashank Srivastava, senior govt director at Maruti Suzuki, India’s largest carmaker, strengthened its SUV portfolio with the Fronx and Jimny fashions final yr. “We hope to extend the SUV market share to round 25% this yr from final yr’s stage of 20%. In truth, the Suzuki Fronx, the entry-level SUV launched final yr, crossed the 100,000 gross sales mark, in lower than 10 months.”
Hyundai Motor India expects SUVs to comprise two-thirds of gross sales in 2024 because of a refreshed product portfolio. “We anticipate the share of SUVs in our complete gross sales will likely be increased,” stated Tarun Garg, chief working officer, Hyundai Motor India, advised ET on the latest launch of its Creta SUV facelift.
General, the share of SUVs in home passenger automobile gross sales has been on the rise, rising to 49% in 2023. This has led carmakers like Maruti Suzuki, Tata Motors, Hyundai, Mahindra & Mahindra to launch extra SUVs to draw new consumers.
Younger, first-time automobile consumers are additionally selecting SUVs, inspired by elevated affordability and varied financing choices. India’s poor highway situations want autos with increased floor clearance and higher dealing with. SUVs, particularly with trendy “all-wheel drive” know-how, supply a way of safety and luxury that small automobiles lack, stated Ravi Bhatia, president, Jato Dynamics.
Regardless of rising considerations about city congestion, the recognition of SUVs stays undeterred. That is significantly true for B- and C-segment SUVs, which provide the proper stability of measurement and practicality for navigating crowded metropolis streets, Bhatia stated.
SUVs will proceed to dominate the Indian market, and attain a 60% share by 2027, in response to Jato Dynamics. Whereas hatchbacks and sedans are more likely to face additional decline in market shares, area of interest segments resembling premium hatchbacks and compact sedans, may see some development. MPVs, with their give attention to practicality and house, are anticipated to keep up their regular share.
