Hyundai Creta on top as Indians pick SUVs in a big way

What explains India’s love affair with SUVs? They will not be precisely “worth for cash” — the watchword for manufacturers throughout segments — nor at all times sensible.

Is it for the badge worth? Or the butch imagery related to SUVs? Maybe each, says Alokananda Chakraborty.

Take a have a look at automobile gross sales figures for February 2021 launched earlier by auto trade physique, the Society of Indian Automobile Manufacturers (Siam): Passenger car gross sales (contains sub-segments of automobiles, utility autos and vans) grew 17.92 per cent in February at 281,380 items, in comparison with 238,622 items in the identical interval in 2020.

Sales of sport utility autos (SUVs) had been up 45 per cent over February 2020, whereas automobile gross sales grew by nearly 4 per cent.

In different phrases, the expansion in passenger car gross sales was led by SUVs and defied the “provide chain challenges” that Siam Director General Rajesh Menon had been warning us about. 

Photograph: Kind courtesy Hyundai Creta/Facebook

Now focus on the manufacturers in the SUV section. In February 2021, the top three had been the Hyundai’s Creta, the Maruti Vitara Brezza and the Hyundai Venue. Kia’s Seltos and Sonet accomplished the top 5 listing.

The February line-up roughly adopted the 2020 development.

The listing of top gamers in the section for 2020 confirmed that Hyundai and Kia had been the clear leaders in gross sales throughout SUV segments, hogging 44 per cent of the market.

Hyundai clocked 180,237 items and Kia 135,295 items, posting 25.5 per cent and 19.1 per cent in phrases of share of the market in calendar 2020.

Take section chief Hyundai Motor India. With 96,989 items of the Creta, Hyundai dominated the mid-size SUV house.

The Korean carmaker received a substantial increase in its share in the section from the Venue (model No. 4 in the pecking order).

More than 82,000 items of the sub-4 metre SUV had been bought in 2020. With these two merchandise main the cost, Hyundai bought a whole of 180,237 SUVs final yr — logging a close to 3 per cent acquire in market share in the section.

“What labored for us was the truth that we had been capable of spot shopper developments early on and had been able to take dangers,” stated Hyundai India’s director of gross sales and advertising Tarun Garg.

From 9 per cent in 2015, SUVs now contribute 42.5 per cent (2020) to Hyundai’s total gross sales in India.

The runner-up model in the section final yr was the Kia’s Seltos at 96,932 items.

“Kia began with a three-pronged technique in India. First, we centered on native product improvement. Second, we developed a broad gross sales community with 265 buyer touchpoints, highest for any new entrant. Third, our premium model constructing marketing campaign started a lot earlier than our first product launch in the nation, elevating consciousness and anticipation for model Kia,” says Tae-Jin Park, govt director and chief gross sales and enterprise technique officer, Kia Motors India.

Maruti Suzuki’s Vitara Brezza, which led the compact-SUV section, stood at 83,666 items final yr, down from its 2019 determine of 127,094 items.

“While we’re the market chief in compact SUVs, total, that is a section the place we will do higher,” stated Shashank Srivastava, govt director for advertising and gross sales at Maruti Suzuki India Ltd.

That stated, the sedan and hatchback market continues to be significantly greater than that of SUVs.

Domestic passenger autos gross sales stood at 24,33,464 items in 2020 (a 17.85 per cent decline over 2019) and SUVs comprised about 29 per cent of that market.

One purpose hatchbacks and sedans promote extra is that there’s hardly any SUV beneath the necessary psychological barrier of Rs 500,000.

But the section has grown steadily over the previous 5 years.

In 2015, the section accounted for 13.5 per cent of the general passenger autos market, rising to about 29 per cent in 2020.

At the tip of the second month of 2021, the section stands at 33 per cent of the general passenger autos market.

Now you already know what makes most gamers in the section so upbeat. Just have a look at the listing of SUVs lined for launch in India in 2021.

Swedish carmaker Volvo is wanting so as to add the XC40 Electric to its portfolio in India this yr, which might be its first electrical car (EV) providing in India.

Bookings will begin in June 2021 and deliveries from October 2021; Audi’s Q7 will make a comeback; Citroen will comply with up its debut providing, the C5 Aircross, with a new compact SUV; Ford is working on a new C SUV, codenamed CX757, to take on the Tata Harrier and MG Hector.

SUV chief Hyundai already has the Kona in the EV section, which was launched in July 2019, and was India’s first EV SUV (the “threat” issue Garg spoke of earlier).

Mahindra, which has a powerful SUV line-up, is hoping to make a sturdy comeback in the market with the brand new era XUV500 and Scorpio this yr.

Among these that can get a facelift are Ford EcoSport, Audi Q5, BMW X3 and X4, whereas the Hyundai Creta household will increase with the arrival of a new 7-seat spinoff.

But what explains India’s love affair with SUVs? They will not be precisely “worth for cash” — the watchword for manufacturers throughout segments — nor at all times sensible.

Is it for the badge worth? Or the butch imagery related to SUVs? Maybe each?

If in their early days it was concerning the distinctive sense of presence SUVs provided, through the years they’ve change into lighter, extra spacious and subsequently extra snug, trade observers level out.

Plus, the technological improvements these autos provide. “You are seated larger and that provides you a higher view of the highway. So you are feeling safer,” stated a communication govt related to an auto model who drives an SUV.

And the highway forward? Smoother than ever earlier than, due to present circumstances.

While they don’t seem to be going to overhaul smaller automobile gross sales anytime quickly, “with journey by prepare changing into troublesome and air journey having its personal set of challenges in the mean time, driving lengthy distances in SUVs with your loved ones or driving holidays is a development that is going to catch on over time,” sums up Hyundai’s Garg.

Feature Presentation: Rajesh Alva/Rediff.com