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Passenger Cars Segments Trend Analysis

India has always been known as a hatchback (small car) dominated market and even the government policies have supported the fame. India was the birthground for sub-4m sedans and SUVs which were highly influenced by the policies. As on H1 FY20; 46% of the cars sales are from hatchback segment (Entry hatch, B & B+); while only 16% is from Sedans. SUVs now contribute for 24% of car sales & MUVs sales accumulate to 15% of the overall sales. Just to analyse how the trends have moved across the past few years we present the study –

Segment-wise Offerings considered for the analysis –


  1. Entry hatch as a segment has seen the biggest drop in past 5 years. Models such as Eon & Nano were discontinued.

  2. B-segment has the biggest pie and infact one of the biggest list of models on sale. A lot of customers have upgraded from the basic Entry-hatch & B-segment to B+ and is a definitive projection of how the Indian customers have upgraded over time.

  3. Sedans are losing sheen over time and the buyers are slowly migrating to the SUVs. Indian road conditions and the pride of owning a SUV (definitely due to road presence) are the factors affecting the change.

  4. SUVs+MUVs contribute to 38% of the overall sales! Expect the trend to aggressively move up as all new OEMs are gunning behind these segments. Seltos, Hector, Triber, etc are testimony for it.

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