AUTO PUNDITZ

Indian Passenger Vehicle Market Body-Style Analysis for H1 2022!

SUV/Crossover body styled products now command 41% share of Indian passenger vehicle market. Hatchback segment is now reduced to 35% due to lack of demand for entry level products. MUVs and sedans gained some lost ground.


Body style analysis

  • SUV/Crossover body style is new favorite among Indian consumers

  • Hatchbacks lost considerable ground to new age crossovers

  • Kia Carens launch in 2022 has improved overall MUV market share

  • Sedans have gained some lost ground due to CNG option and new products introduced by Skoda-Volkswagen

H1 2022 Product list

  • Tata Nexon became the best-selling SUV/Crossover and Punch followed up at No.3 position

  • Technically Maruti Brezza and Toyota Urbancruiser (its rebadged version) is second best selling SUV/Crossover

  • SUV/Crossovers are selling better than erstwhile best-seller Maruti Alto

  • That marks the shift in Indian consumers preference

  • Mahindra Thar reached to #11 position in SUV tally

Deep down analysis – SUV/Crossover body style

Sales of SUV/crossover zoomed in COVID-19 recovery phase and nearly doubled in past two years. This is largely contributed by several new products introduced in the recent past.

Growth, however, is not uniformly spread. So, here we split the data between body-on-ladder-frame SUV (also regarded as true blue SUV) and modern monocoque chassis based SUV/Crossover. Clearly growth is coming from the later and former is almost stagnant.


Monocoque chassis SUV/Crossover

Hyundai-KIA’s dominance was strongly challenged by Tata in 2022 and on a standalone basis Tata has become leader in moncoque SUV/Crossover segment. Maruti’s lack of right SUV product portfolio led to lower segment share.


Hot product segments

Broadly there are three segments which are growing at breakneck speed.

1. Sub-4m crossover: This segment witnessed phenomenal growth in recent times. However, not every product has achieved significant market share. Tata Nexon facelift along with new EV drivetrain has fueled growth and Renault-Nissan added lower price spectrum, thus expanding the reach for customers with low budget.

2. Mid-size SUV/Crossover (~4.3m): Segment is strongly dominated by Hyundai-KIA and Hyundai is selling even more Creta than ever. Skoda-Volkswagen and MG’s new products have expanded the segment further.

3. Large-size SUV/Crossover(4.5m+): This segment grew with new products introduced by Tata (Harrier & Safari new) and MG (Hector). Later in 2021, the segment was set on fire by the blockbuster entry of the all rounded Mahindra XUV 700.

Hatchback body style

The hatchback segment has settled down to a new normal of lower volume and market share in COVID-19 recovery phase.

Major reason is lack of interest in entry level products which were available on discounts throughout H1-2022. Premium products have better demand and have improved market share above 55%. However, entry level crossovers from Renault-Nissan and Tata (Punch) have taken some sheen away from premium hatchbacks too.

Sedan body style

Sedan segment in mass-market category has continuously witnessed loss in market share since 2015, unlike chauffeured around luxury segment, where sedan still commands nearly 50% of market share.

However, after a quite long time the sedan segment saw some revival in 2022. This is largely driven by growth in 4m-sedan category fueled by availability of CNG options from Maruti and Tata. Mid-size segment too saw growth due to the entry of new Skoda-Volkswagen products.

MUV body style

MUV sales growth was largely driven by improved sales of Maruti Ertiga 2nd Generation, XL6 and addition of KIA Carens in 2022.

Similar to the case of SUV, it’s the monocoque chassis based MUV products touching new sales heights.