The demand for Sport Utility Vehicles (SUVs) fell 17.5 per cent in the month of July 2013 albeit, this segment is counted among the bright spots of the gloomy Indian auto market. It must be noted that July was the only month in last four years, which witnessed a fall in the sales of utility vehicles. Expressing his views on the same, the Executive Director of Marketing, Sales and Service at Ford India, Vinay Piparsania was quoted as saying, “Demand has exceeded our expectations and we are witnessing an unprecedented demand for the EcoSport."
Considering the potential of utility vehicle segment, Nissan India recently unveiled a new compact SUV, named Terrano, in the domestic market. With its new model, the auto maker is trying to cash in on the strong demand for affordable SUVs, amid the overall dwindling condition of the Indian auto market. In an official statement, Nissan said, “The Terrano will play a key role in boosting Nissan's sales volume in India and marks the company's entry into the expanding compact SUV segment.”
Reportedly, the Japanese auto maker will be manufacturing Terrano model at its facility near Chennai and start accepting bookings from September 2013. The Chief Executive Officer of Nissan Motor India, Kenichiro Yomura said that as Terrano will be placed in sub-Rs. 10 lakh segment, Nissan is anticipating to pitch the existing SUV buyers and that section of society, which is planning to upgrade to SUVs.
Another model, which has turned fortunes for its manufacture in the compact SUV segment is Ford EcoSport. Carrying a price tag of Rs. 5,59,000, the model has proved its mettle in the Indian auto market since its launch in the country in June 2013. At that time. the model not just competed with the likes of segment ruling Renault Duster, which shares its platform with recently introduced Nissan Terrano, but with also premium hatchbacks and entry level sedans. According to Renault, it sold 3,763 units in July 2013, marking a two-fold increase when compared against the sales figures of year ago period. Amid these total sales, 3,089 units were accounted for Duster.
In the month of July 2013, the American auto maker sold 4,715 units of EcoSport in the country, which increased its overall monthly sales by almost 26 per cent. Speaking on EcoSport, the Executive Director, Marketing, Sales and Service for Ford India, Vinay Piparsania said that it is a positioning that “is beginning to draw from customers who would otherwise have considered other vehicles.”
Industry experts believe that the demand for compact SUVs is anticipated to increase in the neaqr future in developing markets. As per a forecast of IHS Automotive, the sales in this segment will increase from 6,140 units in 2012 to over 126,000 by the end of 2015 in the Indian auto market. Following the same path, it anticipates that the demand in Chinese auto market will double by 2013 end, reaching over 207,000 units. The Singapore-based Executive Director at auto research firm JD Power, Mohit Arora was quoted as saying, “There aren't many products available in the segment (in India), so whoever is launching a car is creating a pull towards those models. While there is an initial pull, one has to look at the stable-state demand, rather than just the initial pull, which comes for any new car that you may launch in the market.”
