Compact sedans overtake SUVs in cut-throat mkt

In their desperate need for some succour in a sluggish market, manufacturers are scrambling over each other to launch either a compact sedan or a compact sports utility vehicle (SUV). But if numbers are anything to go by, it is the family-oriented sedans that rule over the individualistic SUVs.

Compact sedans account for 12% of the 2.5-million unit annual passenger vehicle market in India while the share of compact SUVs is at 4%.

The two major compact sedans in India — Amaze and Swift Dzire, are easily more sought after than their SUV counterparts Renault Duster and Ford EcoSport. The Amaze witnessed sales of over 75,000 units in its first year, more than EcoSport's 45,008 and Duster's 46,786 units. Dzire, meanwhile, was the fastest growing mass-market product in 2013-14 with 16.6% rise in sales during the year.

The latest to join the bandwagon, Hyundai Xcent, has also registered over 11,000 bookings within a month. In contrast, Nissan Terrano, the latest compact SUV to hit the market, has managed sales of around 15,000 units in the last 6 months. The cheapest compact SUV in India — Mahindra Quanto — found only 7,415 takers in 2013-14.

"Compact sedans have scored over SUVs as they are more familyoriented," said Rakesh Srivastava, senior vice-president, Hyundai Motor India Ltd.