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      Compact SUVs: The new trendsetter for Indian customers

      CarTrade Editorial Team

      CarTrade Editorial Team

      At a time when the passenger car market is on the constant decline since the past nine months, the compact Sports Utility Vehicle (SUV) segment has considerably performed well. Since this segment was previously neglected by Indian car makers, now it seems that every major company is in-line to introduce its product in this segment. The inclination of Indian buyers towards compact SUVs started with the launch of Renault Duster as it was aggressively priced. Within a short span of time, Renault Duster became a success for the company as it enjoyed a huge chunk of market share. Eyeing the demand for compact SUVs in India, Ford introduced its EcoSport model that took over the market by storm and currently is among the leaders in its segment.

      Compact SUVs: The new trendsetter for Indian customers
      Compact SUVs: The new trendsetter for Indian customers
       

      Industry experts are of a view that there are numerous reasons that can be attributed to the success of compact SUVs in India. Major car makers like Mahindra & Mahindra, Ford, Renault and Nissan have already introduced their products in the fabled segment. While Maruti Suzuki and Hyundai are expected to enter this segment by 2014.

      Commenting on this future prospects of compact SUV market in India, Vivek Nayer, Chief Marketing Officer, Automotive Division for Mahindra & Mahindra earlier said that with its Quanto model, the company is trying to create a new segment as the market for compact SUV was non-existent in India. He told that the compact SUVs will appeal to hatchback owners, entry level sedan owners and SUV owners as well. “There are areas and scope for improvement in each of these segments,” he said. For example, he says “hatchbacks are compact, have decent mileage and have easy manoeuvrability but do not have the presence, high ground clearance or the space of an SUV. We believe that the compact SUV is the best of both worlds, it allows the user to get the feel of both the worlds. It is compact from the outside, easy to manoeuvre in the city, and at the same time spacious from the inside.”

      Compact SUVs: The new trendsetter for Indian customers
      Compact SUVs: The new trendsetter for Indian customers
       

      According to industry analysts, pricing plays an important factor in charting the success story of compact SUVs in India. As Mahindra Quanto is offered for an ex-showroom price of Rs. 6.15 lakh in Mumbai while Ford EcoSport is available from 5.82 lakh and Renault Duster is priced at Rs. 7.99 lakh for the base variant, these figures relatively speaks for themselves. Experts believe that Indian buyers are actively switching to compact SUVs as these cars are affordable and gives the premium feel of a full-fledged SUVs. “In a competitive scenario like India, pricing is crucial. Most local brands are able to offer their cars at a low price thanks to the localisation that goes into making them. A well spread dealer network also plays an important role when it comes to market penetration. Secondly, maintaining a set quality standard is as crucial as the pricing. The buyers have become more aware of safety features and overall build quality”, an industry expert added.