SUVs drive auto recovery Their popularity suggests that the market has travelled beyond the logical barrier of ~500,000. But the segment has grown search for value-for-money steadily over the past five years. In 2015, the segment accounted ALOKANANDA CHAKRABORTY for 13.5 per cent of the overall New Delhi, 12 March passenger vehicles market, Feb 2020 Feb 2021 TOP 10 SUVs (YoY) growing to about 29 per cent in ake a look at car sales 2020. At the end of the second figures for February month of 2021, the segment 2021 released earlier this stands at 33 per cent of the ove - T 14,024 week by auto industry body, r all passenger vehicles market. 12,428 the Society of Indian 11,585 Now you know what makes 11,224 Automobile Manufacturers 10,321 most players in the segment so (Siam): Passenger vehicle sales upbeat. Just look at the list of 8,305 7,929 (includes sub-segments of cars, 7,997 SUVs lined for launch in India utility vehicles and vans) grew 6,866 in 2021. Swedish carmaker 17.92 per cent in February at Volvo is looking to add the 3,894 3,662 3,532 281,380 units, compared to 3,174 XC40 Electric to its portfolio in 3,226 238,622 units in the same 2,431 India this year, which would be 1,505 1,218 period in 2020. Sales of sport 700 its first electric vehicle (EV) NA utility vehicles (SUVs) were up NA offering in India. Bookings will 45 per cent over February 2020, Hyundai Maruti Hyundai Kia Kia Tata MG Mahindra Renault Mahindrastart in June 2021 and deliver- whereas car sales grew by just Creta Vitara Brezza Venue Seltos Sonet (new) Nexon Hector Scorpio Kiger (new) XUV 300 ies from October 2021; Audi’s about 4 per cent. In other Q7 will make a comeback; words, the growth in passenger Citroën will follow up its debut vehicle sales was led by SUVs TOP 10 SUVs IN 2020 offering, the C5 Aircross, with and defied the “supply chain CY2019 CY 2020 RANK a new compact SUV; Ford is challenges” that Siam Director (-34.2) working on a new C SUV, code- General Rajesh Menon had (% growth in brackets) named CX757, to take on the been warning us about. Tata Harrier and MG Hector. Now focus on the brands in (-2.8) (113.1) SUV leader Hyundai al r e - the SUV segment. In February 127,094 ady has the Kona in the EV seg- 2021, the top three were the (17) ment, which was launched in Hyundai’s Creta, the Maruti July 2019, and was India’s first 99,736 (-20.4) 96,932 Vitara Brezza and the Hyundai 96,989 EV SUV (the “risk” factor Garg 83,666 Venue. Kia’s Seltos and Sonet 82,428 spoke of earlier). Mahindra, (-1) (-33.1) completed the top five list. (-19.9) which has an impressive SUV 70,443 (-32) The February line-up more 69,656 line-up, is hoping to make a 55,433 or less followed the 2020 trend. 49,312 strong comeback in the market 48,842 46,725 45,494 The list of top players in the 40,197 with the new generation 38,363 39,989 39,989 32,197 31,240 segment for 2020 showed that NA 27,181 XUV500 and Scorpio this year. Hyundai and Kia were the clear 1 2 3 4 5 6 7 8 9 10 Among those that will get a leaders in sales across SUV seg- facelift are Ford EcoSport, Audi ments, hogging 44 per cent of Hyundai Kia Seltos Brezza Hyundai Mahindra Tata Nexon Kia Sonet Mahindra Mahindra Ford Eco Q5, BMW X3 and X4, while the the market. Hyundai clocked Creta Venue Bolero Scorpio XUV300 Sport Hyundai Creta family will 180,237 units and Kia 135,295 Source: SIAM expand with the arrival of a units, posting 25.5 per cent and new 7-seat derivative. 19.1 per cent in terms of share But what explains India’s of the market in calendar 2020. love affair with SUVs? They are Take segment leader Hyun - not exactly “value for money” dai Motor India. With 96,989 — the watchword for brands units of the Creta, Hyundai across segments — nor always ruled the mid-size SUV space. practical. Is it for the badge va - The Korean carmaker got a lue? Or the butch imagery asso- substantial boost in its share in ciated with SUVs? Maybe both? the segment from the Venue If in their early days it was (brand No. 4 in the pecking ab out the unique sense of pres- order). More than 82,000 units ence SUVs offered, over the yea - of the sub-4 metre SUV were rs they have become lighter, sold in 2020. With these two more spacious and therefore products leading the charge, more comfortable, industry ob - Hyundai sold a total of 180,237 s ervers point out. Plus, the tec - SUVs last year — logging a near h nological innovations these 3 per cent gain in market share vehicles offer. “You are seated in the segment. “What worked higher and that gives you a bett - for us was the fact that we were with 265 customer touch- er view of the road. So you feel able to spot consumer trends points, highest for any new If in their early days it was about the unique sense of safer,” said a comm un i ca tion early on and were ready to take entrant. Third, our premium presence SUVs offered, over the years they have executive associated with an risks,” said Hyundai India's brand building campaign become lighter, more spacious and therefore more auto brand who drives an SUV. director of sales and marketing began much before our first comfortable, industry observers point out. Plus, And the road ahead? Smo o - Tarun Garg. From 9 per cent in product launch in the country, the technological innovations these vehicles offer ther than ever before, thanks to 2015, SUVs now contribute 42.5 raising awareness and antici- current conditions. While they per cent (2020) to Hyundai’s pation for brand Kia,” says Tae- are not going to overtake overall sales in India. Jin Park, executive director and er in compact SUVs, overall, SUVs. Domestic passenger veh - smaller car sales anytime soon, The runner-up brand in the chief sales and business strat - this is a segment where we can icles sales stood at 24,33,464 “with journey by train becom- segment last year was the Kia’s egy officer, Kia Motors India. do better,” said Shashank Sriv - units in 2020 (a 17.85 per cent ing difficult and air travel hav- Seltos at 96,932 units. Maruti Suzuki’s Vitara Bre - astava, executive director for decline over 2019) and SUVs ing its own set of challenges at “Kia started with a three- z za, which led the compact- marketing and sales at Maruti comprised about 29 per cent of the moment, driving long dist - pronged strategy in India. First, SUV segment, stood at 83,666 Suzuki India Ltd. that market. One reason hatch- ances in SUVs with your family we focused on local product units last year, down from its That said, the sedan and backs and sedans sell more is or driving holidays is a trend development. Second, we dev - 2019 figure of 127,094 units. hat chback market is still con- that there is hardly any SUV that’s going to catch on over e l oped a wide sales network “While we are the market lead - siderably bigger than that of below the important psycho- time”, sums up Hyundai’s Garg..