Share Of Suvs Scales 50% Of Sales In Fy24 | Delhi News – Times of India

by The Technical Blogs


New Delhi: What was once the share of small cars in India has been grabbed by SUVs now. Share of off-roaders (SUVs) — across price points ranging from sub-Rs 10 lakh and upwards Rs 1 crore — in Indian car sales crossed 50% for first time for a full year in 2023-24, almost doubling to what they accounted for four years back.
And, share of hatchbacks (minis), that were once the staple of Indian car buyers and accounted for one out of every two cars sold in the country, slipped to around 28%, beaten down by growing popularity of SUVs.With prices of hatchbacks rising as much as 65% over the past few years and income of their buyers inched up much slower, the humble mini car has failed to keep pace.

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The trend is only going to get stronger as has been the case over the last few years. “We see share of SUVs moving up to around 55% or so from here, while hatchbacks may settle at around 25%,” says Shashank Srivastava, executive committee member at Maruti Suzuki.
The change has been so dramatic that Maruti Suzuki, which was once the home for most affordable mini cars, now gets almost 22% of its sales from SUVs (this was 11% at the close of FY23). With perhaps the widest portfolio of small cars, share of hatchbacks for the company has been slipping over the years.
As hatchbacks fight a battle for survival, the story has been even more challenging for sedans. Share of sedans in car sales slipped to single digit in FY24. They closed the year at 9% against 14.3% at close of FY20.
Companies are cashing in on the trend. Mahindra & Mahindra, Hyundai and Tata Motors and even luxury players, such as, Audi and Mercedes-Benz have been launching new SUVs and also earmarking them for the push towards electrics.
For example, M&M is having a line-up of only off-roaders in its portfolio and has mandated the SUV body style for its soon-to-be-launched new electric vehicles. Hyundai too has been keeping its new launches and marketing expenses focused towards SUVs, something evident from its broad portfolio that has Exter in the entry and progressively moves up through Venue, Creta, Alcazar, and Tucson, with the Ioniq5 EV at the top. “We continue to see strong demand for our SUVs and their share to our total sales now stands at 65%,” says Tarun Garg, COO of Hyundai India.
Mercedes has 12 SUVs in its portfolio.


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