SUVs to drive Indian UV market share to grow to 53% by FY26: Report
High demands for SUVs to result in the Indian utility vehicle market share to grow from 39 per cent in FY21 to 53 per cent in FY26, claims a report by Crisil. The report also claims that the share of utility vehicles, comprising both SUVs and MUVs has increased to 48 per cent in the first nine months of FY22, from 15 per cent in FY02. This shows how fast the growth trajectory of utility vehicles in the Indian passenger vehicle market has been.
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The study also claims that the utility vehicle segment will witness a growth of 14-18 per cent CAGR between FY21 and FY26, while the small cars will see up to six per cent growth during this period.
In the recent past, demands for utility vehicles have been rising at a fast pace. The demands for utility vehicles, especially SUVs have been rising so fast, that it is squeezing other segments such as compact sedans, midsize sedans and to some extent the hatchbacks as well. While the first time buyers used to rely on small hatchbacks, in a changed scenario, they are focusing on SUVs, especially the compact ones.
Availability of a wide range of products from various automakers in both petrol and diesel powertrain options, a host of connected car features, increased affordability, reducing gaps between the sedan and SUV prices, higher comfort level and safety offered by SUVs are playing crucial roles behind this growth momentum.
The study points out how the rising number of utility vehicles in India has helped the growth in this segment. It said the number of utility vehicles in the country increased from 42 in FY13 to 68 in FY20. It further said that Maruti Suzuki Vitara Brezza, Hyundai Creta, Maruti Suzuki Ertiga, Tata Nexon, Mahindra XUV300, Kia Seltos, Hyundai Venue, Renault Triber, Kia Sonet, Nissan Magnite, and Renault Kiger currently constitutes 70-80 per cent of India's utility vehicle segment.
The report indicates that the most adversely impacted segment due to the growth of the utility vehicles will be small cars. It claims that back in FY12, the market share of small cars stood at 65 per cent, while in the first nine months of the current financial year, it was significantly down to 45 per cent.