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| SUV Sales Surge – Small Car looses Charm |
A small car for a happy family was the most catching marketing mantra in India for two decades. But now things look like that caption has any value to market the entry-level segment passenger cars in India. Last year small car sales dip below 50%. Small car segment sales graph disappointed manufacturers like TATA, Renault, Fiat, Nissan and Toyota who has considerable share in small car market. But premium hatchbacks retained their market shares almost as it is. Premium sedans are doing well and surprisingly SUV sales are surging up hot.
The share of the small car segment consists of cars like the Tata Nano, Maruti Alto, Ford Figo, Maruti WagonR, Hyundai’s Santro, i10 and Eon and Chevy Beat came down to 47%. At the same time premium hatchbacks Maruti Swift, Hyundai i20 and VW Polo sales gone up by retaining its market share to 11%. Surprisingly SUV sales have gone up and market share set to 32%, even though the prices of SUVs are three times of the entry level small cars. As per SIAM (Society for Indian Automobile Manufacturers), may be this is a good sign that Indian car buyers are matured and going for premium sedans and SUVs. Last year sedans prices were not slashed and fuel prices got recursive hikes over the time, even though premium sedans have done good business, their market share was 19%.
Why entry level cars have not done good business, because lack of diesel option and increase in rate of Interests. Middle-class people count to major share for entry-level car buyers community most of them already having home loan to repay, the varying interest rates giving them fears in spine to afford a new car loan. Surging fuel prices recursively is also one reason to avoid small cars in anticipation that monthly expenses could inflate. At the same time premium small cars (Maruti Swift , Hyundai i20)have done good business but for the diesel option.
The surge in SUV sales can be attributed to the infrastructure developments undergoing in India. People started loving to travel together to friends and families. All the SUVs are having the diesel options. Now the new flavor in making SUVs is urban SUV. These urban SUVs are made to fit to the daily city life roads and off roads on vacations. Auto majors eyeing this segment. Indian Auto manufacturers in partner ship with auto majors in other countries making new SUVS to hit the hot market. Mahindra and SSangyong, Maruti and Suzuki are some of them to mention.
The share of the small car segment consists of cars like the Tata Nano, Maruti Alto, Ford Figo, Maruti WagonR, Hyundai’s Santro, i10 and Eon and Chevy Beat came down to 47%. At the same time premium hatchbacks Maruti Swift, Hyundai i20 and VW Polo sales gone up by retaining its market share to 11%. Surprisingly SUV sales have gone up and market share set to 32%, even though the prices of SUVs are three times of the entry level small cars. As per SIAM (Society for Indian Automobile Manufacturers), may be this is a good sign that Indian car buyers are matured and going for premium sedans and SUVs. Last year sedans prices were not slashed and fuel prices got recursive hikes over the time, even though premium sedans have done good business, their market share was 19%.
Why entry level cars have not done good business, because lack of diesel option and increase in rate of Interests. Middle-class people count to major share for entry-level car buyers community most of them already having home loan to repay, the varying interest rates giving them fears in spine to afford a new car loan. Surging fuel prices recursively is also one reason to avoid small cars in anticipation that monthly expenses could inflate. At the same time premium small cars (Maruti Swift , Hyundai i20)have done good business but for the diesel option.
The surge in SUV sales can be attributed to the infrastructure developments undergoing in India. People started loving to travel together to friends and families. All the SUVs are having the diesel options. Now the new flavor in making SUVs is urban SUV. These urban SUVs are made to fit to the daily city life roads and off roads on vacations. Auto majors eyeing this segment. Indian Auto manufacturers in partner ship with auto majors in other countries making new SUVS to hit the hot market. Mahindra and SSangyong, Maruti and Suzuki are some of them to mention.
