The car world has long been leaning towards SUVs. There is no difference in India either, as the country’s car buyers have shown great interest in commercial vehicles such as compact SUVs, crossovers and large SUVs. As it turns out, SUVs and RVs have dominated more than 45 percent of the industry over the past five years.
Medium and high-income customers prefer commercial vehicles the most compared to other segments. The growth of this segment has been driven by several factors, such as higher revenues, the launch of new products in the domestic market, etc.
Models like Maruti Suzuki Vitara Brezza, Hyundai Creta, Kia Seltos, Mahindra Thar, Tata Nexon, Tata Harrier have shown great demand in the UV segment in recent years. The segment is planning to launch a number of new models in 2020, which is also likely to increase demand for commercial vehicles.
An interesting fact is that Mahindra, formerly India’s largest SUV manufacturer, has overtaken Hyundai to top this class. The reason for this is the lack of innovation and impressive design from the domestic brand, while Hyundai has significantly improved the game with Creta.
Over the last five financial years, the SUV segment has grown by 35%, 49%, 3%, 15% and 20% between FY17 and FY21, respectively. Other segments, such as the hatchback, sedan and MPV, lagged far behind SUVs. This was much higher than the overall growth rate of the passenger car segment, with a total growth rate of 8%, 9% 3%, -17% and 21% for FY17 in the PV segment.
Hatchback is still the largest owner of general cargo in the industry, accounting for about 50% of total passenger car sales. On the other hand, sedans account for about 18-19% of the country’s total PV population. However, hatchbacks and sedans are declining faster than the industry as a whole, and a large proportion of buyers are moving towards commercial vehicles.
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