The small car segment that has been a key driver of the Indian automobile market has gradually been overcome by the costly and attractive utility vehicles segment. This trend is considered as an indication of maturing market and growing affordability.
Large numbers of automakers that are fully geared up to penetrate the Indian market have lined up their utility vehicles as a flagship product, on the grounds where running cost and affordability was a crucial factor in vehicle purchasing decisions.
But looking at the changing inclination of consumer behavior in India, it clearly seems that the vehicle purchasing trend is drastically evolving.
Rise in the sales of utility vehicles is now revoltingly outpacing the sector. This learning of consumer has motivated various foreign players such as Kia, SAIC, Changan, Borgward, and PSA, which are all set to make the entry in the market in coming years and the woo the customers with SUV first.
As per the analysis, it is projected that the SUV segment sales will reach the mark of 1.4 Million units by 2020 or even more than that, looking at the keen interest shown by the new players in the segment.
The two leading automakers of the market Hyundai Motor and Maruti Suzuki that majorly gained through the sale of passenger vehicles are now keenly focusing on SUV segment with their vehicles such as Creta and Vitara Brezza.
The automakers that are in their last discussion to enter the Indian market have initiated their moves to roll out SUVs in India. It is expected that the automakers will introduce more than half dozen products ranging in Rs 6–25 Lakh price, claims industry experts.
The subsidiary of China’s Shanghai Automotive, MG Motor India, is expected to be the first among the foreign players, which will take on the fresh launched Jeep with its C segment SUV and its B segment compact SUV will take on the Hyundai Creta by next year. The company has almost enclosed the deal to acquire the General Motor’s Halol factory in Gujarat.
Executive Director of MG Motor P Balendran stated that the company is glancing at various programs comprising an SUV launch in India. The products that will be introduced are yet to be finalized, as it may only occur post signing of Halol plant agreement.
Other international automakers such as Kia Motors intend to roll out a competitor for Creta by 2019, whereas, PSA group and Changan are targeting the same segment.