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Passenger Vehicle Body Style Sales Analysis - CY2023

SUV/Crossover body-styled products now command 49% of the Indian passenger vehicle market. The hatchback segment is now reduced to 30% due to a lack of demand for entry-level products. MUVs' share remained flat, while Sedans lost ground further.

Body style market share

  • SUV/Crossover body-styled products now command a 49% share due to Indian consumers' new-found obsession.

  • Hatchbacks lost considerable ground to new-age crossovers.

  • Toyota Innova Hycross launched in 2023 has kept the overall MUV market share constant.

  • Sedans have lost ground due to a shift in demand towards SUV/Crossover.

Hatchback segment

  • Hatchback segment volume slipped in 2023 due to a rapid drop in sales of entry-level products, despite hefty discounts.

  • However, the sub-4m hatchback segment progressed better in 2023.

Sedan segment

Sedan segment volume is purely driven by the sub-4m segment, while other sedan segments became insignificant due to crossover obsession.

SUV/Crossover segment

  • Monocoque chassis SUV/crossover volume grew at a rapid rate.

  • Ladder chassis SUV demand was largely driven by the Mahindra Scorpio N and Thar. A testament to a changed value proposition can change market size.

High growth segment - Mid-size SUV/Crossover (~4.3m)

The entry of new products from Maruti-Toyota in 2022, and Honda in 2023 has expanded the segment further in 2023. Still, the segment is strongly dominated by Hyundai-Kia (52%), and Hyundai is selling even more Creta than ever before, and successfully postponed the facelift by a year.

Emerging segment – ~3.8m Crossover

The entry of Tata Punch in 2021 has created a new sub-segment of crossover under the sub-4m category. This is basically a Tiago (hatchback) equivalent in the crossover segment. With the hatchback segment shrinking, Hyundai has also launched the i10 equivalent, a well-equipped Exter in the crossover segment. Both cars get a sunroof option in the segment. This segment has strong growth potential due to its SUV silhouette, high ground clearance, thus shifting demand from the hatchback segment, and commanding price premiums to generate better profits.


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