Utility vehicles drive 35% of total sales
Vijay C Roy
Tribune News Service
Chandigarh, February 7
Thanks to customers’ growing preference for modern and spacious vehicles, utility vehicles (UVs) have bucked the slowdown in the automobile sector besides increasing its share in the domestic market. The share of utility vehicles, including multi utility vehicles (MUVs), multi-purpose vehicles (MPVs) and sports utility vehicles (SUVs), in the country has risen to 35% over the past couple of years and it is only next to hatchbacks. According to industry, the increase in share of UVs was propelled by the increase in sale of sub-4 metre category UVs such as Maruti Suzuki Vitara Brezza and Hyundai Venue.
According to Society of Indian Automobile Manufacturers (SIAM) data, the sale of passenger vehicles declined by 16.40% in April-December 2019 as compared to corresponding period previous year. Within the passenger vehicles, the sale of cars declined by 23.59% while that of utility vehicles increased by 6.35%.
“The UV segment comprises 35% of total passenger vehicle sales. This segment expanded particularly with the launch of couple of vehicles in the sub-4 metre category over the past couple of years,” said Shashank Shrivastava, Executive Director, Maruti Suzuki India Limited.
In India, the UV segment spans from larger SUVs to MUVs to MPVs to crossovers.
Initially, it was Ford EcoSport, then came Maruti Suzuki’s Brezza and now with Hyundai Venue the segment is growing. According to the industry, the SUV market share was 3-4% six years ago but now it has grown to 20-25%.
At present, utility vehicles are mainly driven by new SUVs such as Kia Motors’ Seltos, Hyundai’s Venue, MG Motors’ Hector and Maruti XL6. While Indians in small cities and towns still buy more hatchbacks and compact sedans, customers in the big cities are upgrading from cars to SUVs of all sizes. These SUVs are not only safe and modern, but boast of advanced technologies which the urban buyer is increasingly demanding.
Also, these UVs have been evolving into multi-purpose vehicles, as these vehicles offer higher ground clearance, easier mobility on unpaved roads, more space for larger families and more engine power.
According to the industry, the segment’s overall share of the passenger vehicle pie has gone up from 27% in April-December 2018 to around 35% in April-December 2019. Also, UVs have also bucked the slowdown, with sales rising 6% to over 7.2 lakh units during April-December 2019.
Auto analysts say the increase in SUV sales has come at the expense of mid-size sedans. With the compact SUV segment, especially in the sub-4 metre category, the customers prefer SUV than sedans.
Experts said the utility vehicles might overtake hatchbacks as the top-selling category in the country in few years.
