In what confirms Indian automotive consumers’ rising desire for utility automobiles (UVs) over sedans and hatchbacks, the primary quarter of FY22 noticed the previous outselling the latter within the sub-segments the place the 2 are current (excluding the mini phase — automobiles beneath 3,600 mm in size — the place there are solely hatchbacks).
According to gross sales knowledge by the Society of Indian Automobile Manufacturers (SIAM), within the April-June 2021 interval, hatchbacks and sedans put collectively offered 2,83,816 items, whereas UVs offered marginally extra at 2,86,092 items.
This was a reverse of the development within the January-March 2021 interval, when hatchbacks and sedans offered 3,79,742 items, and UVs trailed at 3,48,194 items.
Part of the rationale, analysts stated, is six new UVs being launched in latest months (Nissan Magnite in December, new Jeep Compass in January, Renault Kiger and Tata Safari in February, Citroen C5 Aircross in April, and Hyundai Alcazar in June) whose gross sales picked up in April-June, at the same time as there have been no new sedans launched and simply two hatchbacks (new Hyundai i20 in November and Tata Altroz iTurbo in January).
However, the larger cause is customers’ realisation that UVs are ‘more car per car’ (by the way, this was the tagline of Tata Indica, a hatchback).
Som Kapoor, associate, automotive sector, EY India, stated Indian automotive consumers have began realising that UVs have comparatively more room, and supply higher consolation, driving expertise and manoeuvrability, in comparison with sedans or hatchbacks. “In urban markets in particular, the average car-buying age is coming down, and younger buyers, in general, prefer good driving dynamics and customisation over traditional features such as fuel efficiency,” he stated.
Rajeev Singh, associate & chief, automotive, Deloitte India, added that the continued shift to UVs, and SUVs specifically, can also be as a result of these get pleasure from increased resale worth in comparison with a hatchback or an entry-level sedan. He stated a lot of used automobiles go to smaller cities, the place individuals are actually preferring SUVs as these areas could not have nearly as good a street infrastructure as in city areas.
“This leads to more demand in the aftermarket, and thus higher resale value of a new SUV,” he stated.
Gaurav Vangaal, affiliate director, IHS Markit, stated that within the subsequent three quarters, Maruti Suzuki will launch new generations of the Baleno, Celerio and Alto, which can push hatchback gross sales, and Tata is predicted to launch the Hornbill (an entry-level SUV), which can push UV gross sales.
“But, overall, with clear consumer preference towards UVs, India will become a UV country by FY23,” he stated. FE