Indian auto enthusiasts in the past few years, have been taking a liking towards sports utility vehicles in the Sub Rs 10 lakh SUV space. One global manufacturer, who is capturing this space at a rapid pace, is Renault. The company had recently launched the Renault Duster SUV in India. Drivespark has received reports that Renault has managed to get over 5,000 bookings since launch.
Other Global manufacturers are taking notice and we expect quite a few global manufacturers to enter the Sub Rs 10 lakh SUV space. Are you looking to purchase an affordable SUV? The next upcoming compact SUV in India will be from Ford. Ford is expected to launch the Ford EcoSport SUV in India next year. The EcoSport SUV will be offered in petrol and diesel variants.
Maruti Suzuki and Hyundai on the other hand are also looking to tap into this segment. Maruti had showcased the concept SUV XA Alpha at the 2012 Delhi Auto Expo. The concept SUV XA Alpha is based on the Swift platform. Hyundai is also working on a concept SUV (HND-7). We expect these manufacturers to roll out a Sub Rs 10 lakh SUV in the next two years. Other manufacturers that are expected to join the Sub Rs 10 lakh SUV space are Toyota and General Motors.
What could be one of the reason's, Global manufacturers are looking at the UV(Utility Vehicle) Segment. Our in house research shows us that, the Utility Vehicle segment which comprises of multipurpose, sport utility vehicles grew by 50.85 percent between April and June this year.
The demand for an affordable SUV in India has been growing rapidly. Now with Renault launching and aggressively pricing the Duster SUV petrol variant at Rs 7.19 lakh (ex-showroom, Delhi) and diesel variants priced upwards of Rs 7.99 lakh, clearly reflects in their current bookings.
Earlier this segment was widely captured by Tata Motor's Safari for a very long time. But the game is changing rapidly and global manufacturers are targeting this space. We believe if a Global SUV has to capture the Indian market, the manufacturers have a few things to look at. Firstly the price factor. If priced aggressively it can be a game changer. In order for Global manufacturers to price their SUV aggressively, they have to look at high localization levels to keep the price down. Lets not forget the consumer's end. Affordable Fuel efficient compact SUV's loaded with features and a premium drive feel is what one will be looking at.
Has Renault got the Duster positioning, pricing right? Do you think Renault Duster is a good package or are you waiting for Ford's EcoSport? We believe Maruti Suzuki and Tata Motors has already started work behind close garage doors. Do let us know your thoughts & stay tuned!