After 5 years of progress, SUV gross sales hit a bump, Auto Information, DFL
Chennai: Is the SUV craze fading? After rising steadily for 5 years, gross sales of utility and crossover automobiles have fallen sharply since November. And although total utility automobile (UV) wholesales have rebounded in February, it’s on the again of improved MPV gross sales relatively than SUV volumes, which stay damaging.
The UV share in total passenger automobile gross sales this monetary yr can be down marginally. In reality, phase leaders Suzuki Vitara Brezza and Hyundai Creta have been among the many hardest hit in December.
In 2013-14, solely 1-in-5 passenger automobiles offered in India was a utility automobile. By 2016-17, their share had elevated to 1-in-4. And final fiscal, it peaked at 28%. Nevertheless, figures for the April-January interval of this monetary yr present their share is all the way down to 27.2% (see graphic).
Whereas automobile gross sales have additionally slowed since November, the dip in SUV gross sales is extra marked. In January, SUV gross sales have been down 3.5% in comparison with 2.6% for vehicles. In December, 2.3% fewer SUVs offered in comparison with 2% fewer vehicles. And in November, when automobile gross sales fell 1%, SUV gross sales have been down 10.2%.
In February, nonetheless, complete UV (together with SUV and MPV) wholesales rebounded on the again of aggressive billing by firms earlier than the year-end and good efficiency by the MPV phase. SIAM knowledge exhibits complete UV gross sales have been up 3.7% in February, whereas vehicles have been down 4.3%. For April-February, vehicles have been up almost 3%, whereas complete UVs (together with MPVs) have been up 2%.
Suzuki Vitara Brezza, the best-selling compact SUV, noticed gross sales crash from 14,378 models in November to 9,667 in December, though it rebounded to 13,172 models in January. Second positioned Hyundai Creta offered 9,677 models in November; 7,631 in December and 10,314 in January.
Business consultants say each the compact and the mid-sized SUV segments are affected. These have the utmost fashions and account for the majority of gross sales. Within the compact SUV phase, gross sales have been down by 5% — to 1,44,203 from 1,51,141 models — within the November-February interval.
Within the mid-sized phase (Hyundai Tucson, Jeep Compass, and so forth), gross sales fell 19% to 10,105 models from 12,618 within the interval. Gross sales of medium premium SUVs (Toyota Fortuner, Ford Endeavour, and so forth) have been down 9%, to 10,580 models from 11,656 models. Nevertheless, premium SUVs, akin to Land Cruiser and Prado, offered 37 models as towards 30 earlier.
Gross sales have fallen as a result of total subdued shopper sentiment, stated Mahindra & Mahindra president (automotive sector) Rajan Wadhera. “In December, a call was taken to focus on retail to bring dealer stocks to normal, and this has resulted in low performance. The availability of finance is an issue.” He stated patrons are avoiding highpriced SUVs.
Different consultants stated individuals could also be delaying shopping for to attend for BS-6-compliant automobiles. Additionally, SUVs, which largely have diesel engines, could also be trying much less engaging as a result of gasoline costs are once more rising and diesel is inching nearer to petrol.