Sedan sales hit as Indians customers opt for SUVs - Report

26/10/2016 - 14:51 | ,  ,   | Aravind Jayachandran

India's interest in the sedan is a thing of the past, says HMIL's Rakesh Srivastava.

Compact SUVs has witnessed a significant rise in demand over the past couple of years in the Indian market, which has affected sales of the once-popular bodystyle - the sedan.

2016 Honda Amaze 1.2 VX (facelift) front three quarter close First Drive Review
Sales of cars like the Honda Amaze have been impacted by the demand for compact SUVs.

In terms of numbers, the total sedan sales came down from 3,20,357 units to 2,77,499 units in this H1 2016, while the sub-4m sedan segment registered a decline in sales for the first time in 7 years. The only sedans that have managed to clock growth in H1 are the Maruti Ciaz, Ford Aspire and Hyundai Xcent.

Why demand of sedans has gone down is attributed to the similar pricing of compact SUVs and premium hatchbacks, shifting of demand from sedans to hatchbacks by fleet operators, and increased practicality as well as appeal of a compact SUV. Customers prefer the look and practicality of a utility vehicle, but the drivability of a regular car.

Maruti Vitara Brezza side First Drive Review
Customers now prefer the look and practicality of a utility vehicle, but the drivability of a regular car, which M&M's Dr. Pawan Goenka also mentioned in a recent interview, when describing the company's next product.

Also Read: Toyota Fortuner reaches dealerships, is ready for launch

Fueling the growth of compact SUVs are products like the Maruti Vitara Brezza, Hyundai Creta, Ford EcoSport and Renault Duster, which have significantly contributed to the growth of the respective manufacturer's UV portfolio. This decade, Tata Motors, Nissan and Volkswagen will introduce new and affordable compact SUVs, thus increasing the choices available for a car buyer.

[Source: ET Auto]

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