SUV craze boosts passenger vehicle sales

Of these, four were sports utility vehicles (SUVs), led by Tata Motors’ Nexon, whose sales nearly doubled in April from a year earlier. According to data shared with Mint by automotive intelligence firm JATO Dynamics, the Tata Nexon has outsold Maruti Suzuki’s Baleno and Alto 800, a premium hatchback and micro hatchback, respectively, over the past few years. first four months of this year, toppling the Hyundai Creta as an Indian vehicle. Best-selling SUV in 2021.
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The Creta, however, closely followed the Nexon in second place in April, selling 12,651 units, while the Nexon sold 13,471 units.
Maruti Suzuki’s Ertiga multi-utility vehicle (MUV) was unmatched at the top last month, while Vitara Brezza and Tata Punch subcompact SUVs rounded out the top 5.
According to data released by the Federation of Automobile Dealers Associations (FADA), passenger vehicle registrations in April rose nearly 12%, compared to the same month in 2019, a normal benchmark before the pandemic.
It was the only segment that showed growth in April compared to fiscal 2019, other than tractors, even as overall industry volumes were down 6%.
The growing market share of companies with a well-accepted SUV portfolio reflects changing customer preferences. FADA data shows SUV-focused automakers Mahindra and Mahindra, Tata Motors and Kia Motors India gained market share in April at 8.4%, 13.8% and 6.4%. %, respectively, compared to 5.7%, 9.2% and 5.6% in April last year.
At the same time, market leader Maruti Suzuki lost its market share by nearly 46% to 40% due to a lack of new SUV launches.
South Korean automaker Hyundai also lost market share (about 2 percentage points) to competitors as it struggled with production issues last year.
This year, another round of new SUV launches is expected to further intensify competition in the segment.
“SUV sales are booming. They are driving volumes in the industry and have grown significantly over the past year. SUVs now account for 43% of all passenger vehicle sales, up from just over 26% in 2019. This year will see the launch of nine new SUV models. We expect SUV sales to climb at a CAGR (compound average growth rate) of 9% over the next seven years, to exceed 2.16 million units by 2028,” said Ravi Bhatia, President and Director of JATO Dynamics India.
“In fact, SUVs should not only drive volumes, but also profitability for OEMs (original equipment manufacturers). Even brands associated with sports cars and luxury sedans are seriously considering SUVs. Body styles mini cars and sub-compact hatchbacks form the belly of the Indian car market, with a combined market share of 47% between them.We know that it is difficult for product designers to balance economy and aspiration, and as a result, we expect to see more consumers turning to subcompact SUVs MPVs and minivans are the third largest segment and have also caught the attention of OEMs to meet the needs of larger families. many and the taxi segment,” he added.
Meanwhile, as the demand for UV increases, the waiting period also increases.
“SUVs are definitely popular with customers right now, but due to a widespread shortage of semiconductors, we’re seeing wait times ranging from two months to over a year. Wait times are also high for some popular small cars and premium sedans, such as the Baleno Alpha AMT and Renault Kiger,” FADA President Vinkesh Gulati said in an interview.
According to data shared by FADA, Maruti’s MPV Ertiga is on a waiting period of 3-4 months depending on the model, while the Baleno Alpha AMT variant attracts a waiting period of 2.5-3 months.
The Hyundai Creta also has a delivery time of 2 to 4 months, with delivery times for some models of up to more than six months.
Mahindra’s Thar and XUV700 have waiting periods of over six months and a year, respectively, while the new Kia Carens is also out for a year.
The Tata Punch and the Nexon have waiting periods of about two months, FADA said.