Indian small car exports rise amid domestic SUV demand
As India sees a growing preference for SUVs and feature-rich four-wheelers, smaller cars from manufacturers like Maruti Suzuki and Hyundai, are seeing increased popularity in overseas markets. The small car category, once a dominant force in the country's passenger vehicle (PV) market, now holds less than 30% of the domestic market share. However, these compact models are witnessing a surge in exports despite their declining local demand.
A look at the market trends
In the financial year 2017-18 (FY18), small cars constituted 47.4% of India's total PV market share, which slightly dipped to 46% in FY19 and rebounded to 46.5% in FY20. However, the trend toward SUVs has continued unabated, with this segment contributing 53.6% to the total PV segment in FY24. Amid this domestic shift, Indian automakers have significantly increased their exports of small cars to various international markets.
Maruti Suzuki and Hyundai lead small car exports
Maruti Suzuki exported 2.8 lakh cars in FY24, including models such as Swift, Dzire, S-Presso, and Baleno, to nations like South Africa, Saudi Arabia, Mexico, Chile, and the Philippines. Hyundai also joined the export surge with sedans such as the Verna and Aura, along with the Grand i10 Nios to markets including Mexico, Chile, South Africa, Saudi Arabia, and Peru. Both carmakers have reported strong demand for these smaller models abroad and anticipate this trend to persist.
Automakers optimistic about small car segment's future
Despite the current domestic preference for larger cars, brands remain hopeful about the future of the small car segment. They hope that a resurgence in the two-wheeler market might be a positive indicator for small car sales. The rise in hatchback prices due to stringent emissions and safety regulations has impacted affordability, but manufacturers are confident that this segment will revive by 2026 or 2027.
