Hatchback cars, which were formerly the preferred option for Indian families, are currently becoming less and less popular. According to the most recent industry statistics, hatchbacks’ market share in the total passenger vehicle (PV) sector has significantly decreased, falling from 47.4% in FY18 to just 27.7% in FY24.
The Changing Landscape of Indian Passenger Vehicles
Out of the 3,288,581 PVs sold in FY18, hatchbacks accounted for 1,558,787 of the market share. In FY24, the overall PV market increased to 4,218,746 units, but the number of hatchbacks sold decreased to 1,168,593. In spite of the PV market’s 28% growth, this corresponds to a 25% drop in hatchback sales over a six-year period.
Rise of Sub-4 Metre SUVs
Analysts for automobiles believe that one of the main reasons hatchback sales are declining is the rising demand for SUVs. In particular, hatchback sales have been greatly impacted by the rise in sales and recent introductions of sub-4 metre SUVs. The market has taken an interest in these small SUVs, which are somewhat more costly than high-end hatchbacks, and this has caused a change in customer choice.
The SUV Invasion: A Timeline
Hatchbacks didn’t start to feel the heat until 2019–21, even though the SUV trend started to gain up about 2015–16 with vehicles like the Hyundai Creta. During this time, a large number of sub-4 metre SUVs entered the market, steadily reducing the hatchback’s market share. Hatchbacks had a strong market share of 47.4% in FY18 and continued to have a consistent 46% share through FY21. But there was a dramatic drop when many of sub-4 metre SUVs appeared.
A Sharp Decline in Market Share
Hatchbacks to PVs saw a sharp decline, going from 45.6% in FY21 to 37.5% in FY22. As a result of this persistent decline, hatchbacks’ share of the PV market fell from 34.4% in FY23 to just 27.7% in FY24. This drop was caused in part by the introduction of well-liked sub-4-meter SUVs such as the Hyundai Venue, Kia Sonet, Toyota Urban Cruiser, Nissan Magnite, and Renault Kiger. These cars presented a strong option to buyers, costing just 10% to 20% more than high-end hatchbacks like the Maruti Suzuki Baleno.
Consumer Preferences Shift
The allure of the small SUVs is their ability to combine utility, style, and room. These SUVs are more reasonably priced than high-end hatchbacks and provide greater ground clearance, a higher driving position, and a more rugged look. Numerous consumers are choosing small SUVs over conventional hatchbacks as a result of these characteristics.
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