Compact SUVs Become #1 Choice For Indians; Beat Small Car Segment In 2022
The automobile buyers of India have preferred cars from the SUV segment over hatchbacks, as shown by the data from top players of the industry.
In fact, more than one in every two passenger vehicle sold in India now is a utility vehicle.
SUVs Selling Faster Than Hatchbacks
The SUVs have now surpassed hatchbacks which have been at the forefront for a long time now. In this financial year that will end on March 31, compact sport utility vehicles will be overtaking premium small cars to become the top selling segment in the Indian passengers vehicle market.
As per the data by automobile manufacturers, around 600,000 entry-level SUVs such as Maruti Suzuki Brezza, Tata’s Punch and Nexon, Renault Kiger, and Hyundai Venue were sold in the first 11 months of the financial year 2022. They also made up for 22 percent of India’s passenger vehicle market.
On the other hand, premium hatchbacks sold about 540,000 units or 19% of the market.
Top Reasons For SUVs being Preferred Over Hatchbacks
As we are aware, a lot of SUVs have been introduced in the market for under Rs. 10 lakh in the last few years. This has been possible due to the availability of finance and supply chain disruptions that impacted the production of the hatchbacks.
Maruti Suzuki’s Brezza has been the top selling model in the compact SUV category, as per Shashank Srivastava, Maruti Suzuki’s senior executive director (sales and marketing). He said, “This segment has seen a slew of new launches which have further galvanised consumer interest.”
He also commented that the top reasons for such a high rate of growth of SUVs are that customers are increasingly preferring the SUV design, the upright driving stance and high ground clearance. This makes SUVs comfortable to drive in the conditions of the roads in India.
SUVs also make up for more than half the sales at Hyundai Motor India and Tata Motors. On the other hand, Mahindra & Mahindra, Jeep, Kia, MG Motor and Nissan sell only SUVs. more than three dozen SUVs have been launched in the Indian market in the last three to four years and the share of entry level SUVs in the overall market is 60%.