MUVs fast emerging as a substitute for sedans in India

Monday 16 July 2012, 12:20 PM by

Multi Utility Vehicles (MUVs) in the country have been enjoying a demand like never before. In Q2 of 2012, it happened for the first time in history that MUVs outsold the sedans in their respective segments and price range. Mahindra's latest release, XUV500 is the sole harbinger of the demand spurge witnessed by the segment along with the Maruti Suzuki Ertiga and Toyota Innova. In fact, XUV 500 sold 50 per cent in excess of all other cars cumulatively for Q1 of FY 2013 in the executive segment, which falls in the price bracket of Rs. 11-15 lacs.

MUVs fast emerging as a substitute for sedans in India  |
MUVs fast emerging as a substitute for sedans in India

The sales for Mahindra's MUV stood at 9,000 units, whereas, cars like Corolla Altis, Chevrolet Cruze, Honda Civic, Skoda Laura and Volkswagen Jetta collectively managed to sell only 6,432 units. At the same time, 20,000 Toyota Innovas were sold, which is also a tough rival in the same segment. Maruti Suzuki Ertiga too has been posing teeth grinding competition to the mid-size sedans like Verna, Vento and City among others by selling 6,000 units every month on an average.

The phenomenon is even more prominent in the premium Sports Utility Vehicle (SUV) and passenger car segment in the price bracket of Rr. 20-25 lacs. SUVs like Toyota Fortuner, Ford Endevour, Skoda Yeti and others sold 5,580 units during the Q1 of FY 2013 compared to 1,244 units of Honda Accord, Toyota Camry, Skoda Superb, etc.

The MUV segment's market share witnessed a YoY surge of 18 per cent during the April-June quarter of current year as against 13 per cent for the corresponding period in FY 2012. This segment comprised a formidable 1,18,000 strong share in the overall market sales of around 6.5 lacs units in the Q1 of current fiscal.

Executive Director, Marketing, Maruti Suzuki, Shashank Srivastava, said, “With the Indian market maturing, there will be new segment and sub-segments that will emerge. You will see niche segments turning into volumes market. As for the MPV, SUV space, the market was always there, but there were not many options available. With our Ertiga and other offerings from the competition, the segment will expand further.”

The solitary drive behind the frenzy for the MUVs is the novelty factor as well as the feature-rich package of the products. The lack of worthy products between rugged SUVs and their premium counterparts was the main reason behind the lacklustre market share for the same till now. However, the launch of SUVs like Ertiga and XUV 500 along with several launches in the pipeline such as EcoSport seems to be bringing in a big change.

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