Micro SUV sales surge 72% in India: Punch, EXTER lead
What's the story
India's automotive market is witnessing a significant shift toward micro SUVs, despite an overall slowdown in car sales. Models such as Hyundai's EXTER and Tata Motors's Punch, both priced under ₹10 lakh, are driving this trend with a remarkable 72% increase in sales during the initial four months of this fiscal year (FY). This surge outpaces the modest 1.8% rise in total domestic passenger vehicle sales, as reported by The Economic Times.
Market shift
Micro SUV sales offset decline in small car segment
Data from automotive consultancy Jato Dynamics reveals that a total of 175,330 micro SUVs were sold between April and July 2024. This figure marks a significant increase from the 101,855 units sold during the same period last year. The additional 73,475 units sold in this category have compensated for a drop in hatchback and small car sales, which fell by nearly 70,000 units during the same timeframe.
Industry growth
New entrants and market expansion
The robust performance of micro SUVs, primarily driven by Punch and EXTER, has boosted their market share among vehicles priced up to ₹10 lakh by 11% between April and July 2024. This trend coincides with a decline in hatchback sales, which saw a 17% drop during the same period. The shift is attributed to rising aspirations among rural buyers and the growing availability of affordable SUVs.
Outlook
Future prospects and competition
The micro SUV market is set to become more competitive with new entrants like Kia Motors preparing to launch its first micro SUV, the Clavia. Hyundai is also developing the Bayon compact SUV to rival Maruti Suzuki's Fronx. SKODA, a Volkswagen Group company, plans to introduce its Kylaq compact SUV early next year. Meanwhile, Maruti Suzuki is reportedly working on a model to compete with Punch and EXTER.