SUV launches jam sales highway as sedans and hatchbacks take a backseat
Indian carmakers have rolled out more sports utility vehicles than all other types of passenger vehicles combined in the last two years and the trend is likely to continue with many new SUVs proving instant hits.
The number of SUV launches hit a new high this calendar year at 108, reaching the three-figure mark for the first time. In the overall passenger vehicle segment, though, there have been fewer launches in 2023 than in the pre-pandemic 2019 with hatchbacks and sedans taking a hit, data collated by automotive market research firm Jato Dynamics shows.
Only 47 new sedan models hit the road this year (till October end) against 62 in 2019 while the number of hatchback launches more than halved to 21 from 48.
The increased focus on SUVs reflects a major shift in the Indian passenger car market in the last few years.
Demand for hatchbacks and sedans have declined.
SUV sales hit new highs with more than half of car buyers in the country now preferring them.
This trend is a boon for car manufacturers as profit margins on these types of vehicles tend to be significantly higher compared to hatchbacks and sedans. Carmakers are «capitalising on this trend by adding safety, convenience, and connectivity features to their SUVs, further enhancing their appeal to premium-seeking buyers», said Ravi Bhatia, president of Jato Dynamics.
The industry is gung-ho about this trend continuing.
«We expect the SUV share to further grow, backed by the new launches,» said Vinay Pant, head — marketing at Tata Motors Passenger Vehicles, whose Nexon is the largest-selling SUV model in the country. «The tremendous growth of SUVs has been driven by better vehicle capability like higher ground clearance, better performance allowing for multi
