Swaraj Baggonkar Moneycontrol News
In just two years, more than two dozen launches of sports utility vehicles (SUVs) have sent their demand charts soaring, pushing the overall share of utility vehicles to an all-time high.
One in every four passenger vehicles sold now is a utility vehicle (UV). As of November end, the share of UVs expanded to 27 percent. Five years ago share of UVs stood one in five, which is when a handful of SUV models dominated buyers' choices.
Maruti Suzuki, India’s biggest car maker, jumped the bandwagon in 2016, introducing the Vitara Brezza and dethroned the reigning champion Mahindra & Mahindra in the UV space within a year.
Tata Motors launched the Nexon in September and bookings for the compact SUV swelled to 10,000 in two weeks and in the process stretching the waiting period of the car to two months. The company is ramping up deliveries to bring down the waiting period. Nexon is already the second largest-selling SUV in India.
Within two months, bookings for the Jeep Compass climbed to 10,000 units, straining Fiat’s manufacturing plant located near Pune. The mid-size premium SUV starts at Rs 15 lakh.
As per data shared by the Society of Indian Automobile Manufacturers (SIAM), sales of UVs climbed 20 percent to 5.97 lakh units during January-November as against 4.97 lakh units sold during the same period last year.
Tata Nexon, Hyundai Creta, Maruti Brezza, Toyota Innova Crysta, Toyota Fortuner (facelift), Ford EcoSport (facelift) , Mahindra TUV 300, Mahindra KUV 100, Mahindra NuvoSport, Renault Duster (facelift), Honda BRV, Tata Hexa, Jeep Compass, Skoda Kodiaq, Volkswagen Tiguan, Isuzu MU-X, Ford Endeavour (facelift), Mahindra Scorpio (facelift), Mahindra Bolero (mini), Renault Captur to name some were launched in the last two years alone.
These UVs helped push total sales of passenger vehicles up by 8 percent to 2.18 million units, which otherwise posted a growth of just 4.7 percent comprising cars and vans.
“Worldwide share of SUVs is set to grow to 45 percent. India has a lot of headroom for growth. There will be different models at various price points - sub-four meter, mid-segment, premium and luxury SUVs – serving varied consumer tastes”, said a senior official of Maruti Suzuki.
After the success of Brezza, Maruti Suzuki is now working on a slightly bigger SUV that will be positioned in the same bracket as the Hyundai Creta and Renault Duster. The company hopes to launch the car in 2019.
Hyundai is also readying a sub-four meter SUV, which will be based on a concept vehicle the company showcased at the 2016 India Auto Expo. This new SUV will compete against the hugely successful Vitara Brezza.
Tata Motors is in advanced stages of developing a mid-size SUV that will rival the Creta and Renault Captur. Its traditional rival Mahindra & Mahindra (M&M) will introduce yet another compact SUV in a few months that will take on the Tata Nexon and Maruti Brezza.
A number of other companies like Volkswagen, Fiat, Skoda, Nissan, Datsun, MG Motor, Kia and have shown interest in launching SUVs in India.
“SUVs have their own charm and road presence. Modern stylish SUVs have a universal appeal cutting across genders and age groups. That makes them a popular choice. Despite the Indian government slapping more taxes on them their demand remains unabated”, said another executive from a Mumbai-based company.
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