Utility vehicles represent 34% of passenger vehicle sales.
CHENNAI: India's new love for utility vehicles has brought that segment of a mere 13% of total passenger vehicle sales nine years ago to more than a third so far this fiscal year.
In 2010-11, the automotive industry launched 78 new cars on Indian roads and 36 new UV. So far this fiscal year, 53 new cars have been launched and an equal number of UVs have been launched, according to data from the SIAM industry agency.
The shift towards UV rays has been so strong that the overall share of the segment in the passenger car pie has increased from 27% in April-December 2018 to 34% in April-December 2019. UV rays have also offset the slowdown, with a 6% increase in sales to more than 7.2 lakh units during April-December 2019. In contrast, car sales fell 23.6%, while total passenger vehicle sales they fell 16.4% in this period, according to SIAM data.
“India is following a global trend in which UV rays are increasing their share of total PV sales. This is because UV has evolved into multipurpose vehicles. They offer greater ground clearance, easier mobility on unpaved roads, more space for larger families and more engine power. There have been more UV releases than cars and that trend is also global. This change should be resolved with UV rays in about 45-50% of the photovoltaic market in 3-4 years, ”said SIAM President Rajan Wadhera.
Industry players do not expect the trend to change even after the change to BS-VI since April. “UV rays have already entered the sub-4 meter category where more gasoline SUVs are sold than diesel. After BS-VI, SUVs in the range of Rs 13-20 lakh will remain largely diesel, but the compact UV will be mainly gasoline, said Wadhera, who is also president of the Mahindra automotive division. Currently, diesel has a 70% share of the UV market.
Automotive analysts say the increase in SUV sales came at the expense of medium-sized sedans. With the compact SUV segment, the average price of SUVs has dropped from Rs 15 lakh to less than Rs 10 lakh, so the customer who used to buy, for example, Ciaz, City or Verna, now buys an SUV, said. Ashish Modani, vice president of the ICRA rating agency.
The popularity of the SUV is also reflected in the used car market. Ashutosh Pandey, CEO of Mahindra First Choice Wheels, said: “Also in used vehicles, UV rays have a growing share, although it is lower, around 25%. This is because a large number of vehicles sold in the used car market are old hatch and entry level models such as i10, Alto, etc. ”As hatch owners update, the supply of old hatch and entry cars has increased in the group of used cars. .
Currently, the UV SIAM classification includes both larger chassis-based vehicles and the Toyota Fortuner as well as compact monocoque vehicles such as the Vitara Brezza. In India, the UV segment covers everything from larger SUVs to MPVs and crossovers, but at the lower end the UVs are mostly like cars or monohulls, while the higher priced vehicles are both chassis and monohulls, Modani said. .