Now the car manufacturers in India are more concentrating on the segment of compact SUVS (Sports Utility Vehicles). Past three years back, the compact SUV segment has not even 1% share in the SUV segment but now the share of the compact SUV segment has reached to 41%. There are several reasons to increase the sales of compact SUVS such as the price of the compact SUV vehicles is below 10 lakhs, the younger generation desires, the life-style of customers, and an eagerness of end-users like traveling more distances on road.
In the domestic auto market, the SUV sales reached to around 50,000 units per month, in which compact SUVS share is in the range of 18,000 to 20,000 units. As per the research, the compact SUVs hold 2,40,000 units of sales per year in India. The Automotive Industry has expected that the sales of compact SUVS will be crossed 9 lakh units by the year 2020.
Ashish Malik, Mahindra & Mahindra Vice President of Marketing and Automotive Sector said, Mahindra & Mahindra, Maruti Suzuki, Ford, Nissan and Hyundai companies offering vehicles in the compact SUV segment.
One of the famous car dealers said, the buyers have much-interested about the compact SUVs as of the style of the body appearance, comfortable features, spacious interior, an advanced technology, and luxurious facilities like entertainment features, head rests, etc. And one more thing, there is a little bit of price variation in the between the petrol and diesel fuel types. But, the customers are moving towards for the diesel SUVs and now the diesel engines share was 88% in the sales of SUVS.
Competition of Prices:
Recently, Maruti Suzuki has introduced the Maruti S-Cross crossover at Rs. 8.34 lakhs and Hyundai has offered the Hyundai Creta at Rs. 9.47 lakhs. Few days back, Mahindra & Mahindra has launched the compact SUV, Mahindra TUV 300 in India and planning to introduce two or more vehicles in the same segment in this financial year. With successful movement of the S-Cross, Maruti Suzuki has planning to release the Suzuki Vitara in the compact SUV segment. Last year, Ford has released the compact SUV Ford EcoSport vehicle in the compact SUV segment at starting price of Rs.9.60 lakhs. By observing the price structure of all SUVs, there is thousands of variation between the competitors.
Mahindra & Mahindra has expected that the Mahindra TUV 300 gives competition in terms of prices and performance in the SUV segment. Besides, the company has making of 5,000 TUV vehicles per month at its own manufacturing plant. As a best competitor, the Mahindra TUV 300 has offered under the Sub-4meter structure at Rs. 8.48lakhs of starting price. Along with the TUV 300, the Auto Industry has expected that the upcoming Maruti Vitara will be released under the Sub-4metre structure and the price will be reasonable. In fact, The Government of India has providing exemption of excise duty on the Sub -4m SUVs.
The domestic market would be packed with the compact SUVS, in which around 10-15 are from the branded companies, in less than one year and the share of the segment will increase. It is seems to be the auto market will be full-filled with Compact SUVs by 2020 and the sales will be reached or crossed 9 lakh units.