Click it and Unblock the Notifications
Indian Car Industry Is Not Just Small Cars
The growing economy and aspirations of car buyers has meant that they are no longer satisfied with a small hatchback. The most preferred car is still the hatchback but the not the a-segment version. Sales of compact hatchbacks are now growing quicker at the expense of small cars.
People who want to move up from a compact hatchback now either opt for a bigger sedan or an MPV. Sedans such as the Hyundai Verna, Maruti Suzuki SX4, Nissan Sunny, Skoda Rapid and the Volkswagen Vento are now more popular. These cars are now more visible on Indian roads than they were a few years ago.
On the other hands, small cars such as the Maruti Suzuki Wagon R, Hyundai Santro and Chevrolet Spark which had a huge presence few years ago have seen their sales slow down. Although carmakers are disturbed by the decline in sales of small cars, they are satisfied in increased sales of bigger cars as they are more profitable than small cars.
Analysts explain this shift towards larger cars among car buyers is due to the drop in average age of car buyers. The car buyers are younger and are ready to spend higher on cars that offer more comfort and space. This is the very reason behind even a small car specialist like Maruti Suzuki launching an MPV in the form of the Ertiga.
The prices of sedans have also come down by as much as Rs.2 lakhs. The starting price of a sedan is as low as Rs.6 lakhs from the earlier Rs.8 lakhs. This lower price has made sedans more attractive to buyers as they offer more space, luggage space and comfort.
The MPV segment has also been seeing growth in bigger numbers. Models such as the Toyota Innova, Mahindra Xylo, Chevrolet Tavera have seen increased sales particularly in rural markets. Larger families prefer MPVs. The segment is set to see competition hotting up with the arrival of more MPVs following the Ertiga.
Car sales during this fiscal year is expected to show a more clear shift to wards larger cars. Although carmakers will want to at least maintain sales of small cars, most of them do not have diesel engines making them slightly unattractive when compared with entry level sedans. Is this the end of an era of small cars in the Indian car market?
Continue with Google