And, share of hatchbacks (minis), that had been as soon as the staple of Indian automobile patrons and accounted for one out of each two automobiles bought within the nation, slipped to round 28%, crushed down by rising recognition of SUVs.With costs of hatchbacks rising as a lot as 65% over the previous few years and earnings of their patrons inched up a lot slower, the standard mini automobile has did not preserve tempo.
The pattern is simply going to get stronger as has been the case over the previous couple of years. “We see share of SUVs shifting as much as round 55% or so from right here, whereas hatchbacks might settle at round 25%,” says Shashank Srivastava, government committee member at Maruti Suzuki.
The change has been so dramatic that Maruti Suzuki, which was as soon as the house for many reasonably priced mini automobiles, now will get virtually 22% of its gross sales from SUVs (this was 11% on the shut of FY23). With maybe the widest portfolio of small automobiles, share of hatchbacks for the corporate has been slipping over time.
As hatchbacks battle a battle for survival, the story has been much more difficult for sedans. Share of sedans in automobile gross sales slipped to single digit in FY24. They closed the 12 months at 9% towards 14.3% at shut of FY20.
Corporations are cashing in on the pattern. Mahindra & Mahindra, Hyundai and Tata Motors and even luxurious gamers, reminiscent of, Audi and Mercedes-Benz have been launching new SUVs and likewise earmarking them for the push in direction of electrics.
For instance, M&M is having a line-up of solely off-roaders in its portfolio and has mandated the SUV physique fashion for its soon-to-be-launched new electrical automobiles. Hyundai too has been protecting its new launches and advertising and marketing bills targeted in direction of SUVs, one thing evident from its broad portfolio that has Exter within the entry and progressively strikes up by means of Venue, Creta, Alcazar, and Tucson, with the Ioniq5 EV on the prime. “We proceed to see robust demand for our SUVs and their share to our complete gross sales now stands at 65%,” says Tarun Garg, COO of Hyundai India.
Mercedes has 12 SUVs in its portfolio.
