The entry level hatchback segment of India saw rise in sales of Nano, Alto and Eon even as the sales of bigger petrol hatchbacks declined. The three models are priced below Rs. 3.5 lacs and deliver fuel efficiency of 21-25 kmpl. In the last quarter of the 2011-12 financial year, 33,000 units of Alto were sold per month, whereas 10,000 Nanos hit the roads during the same period. With sales of 12,500 units during Q4 of FY 2011-12, Eon came forward as the South Korean car maker's highest selling model, replacing the i10. These sales figures are in stark contrast to 2011, when Tata, Maruti Suzuki and Hyundai sold only 26,000 Altos, 7,000 Nanos and 6,000 Eons on a monthly basis.
While sales of small cars rose, bigger hatchbacks languished in terms of volumes in the domestic market. Hyundai rolled out 5,359 and 10,157 units of Santro and i10, which used to be its highest selling models, respectively. Likewise, the petrol variants of Maruti Suzuki A-Star and Estilo did not fare well in the market, with monthly sales of only 706 and 1,001 units, respectively. These cars cost up to Rs. 6 lacs and deliver average of close to 16-20 kmpl, thus making them costlier in the long run.
On this, Shashank Srivastava, Chief General Manager – Marketing, Maruti Suzuki India, stated, “As you move towards bigger petrol cars, mileage doesn’t allow a purchase decision with high fuel prices. So there is no option but to shift to a smaller petrol car. Those who have the money are usually going for diesel cars in higher segments within the small car category. There is no diesel car in the smallest car segment, but if there was, people would have definitely gone for it.”
Abdul Majeed, Auto Practice Leader, PwC, concurred, saying, “Manufacturers who are unable to offer diesel variants of smaller cars are trying to push sales of their fuel-efficient small petrol cars. People are also opting for fuel-efficient small cars if they can’t afford diesel vehicles. This trend will continue.”
However, manufacturers are still trying to boost the prospects of their cars in the market through discounts and free gifts. Hyundai India is offering free colour television and cash discount amounting to Rs. 30,000 with its i10, Eon is sold with an exchange bonus of Rs. 10,000 and Santro comes with gifts worth Rs. 28,500. Tata Motors continues to push sales of its Nano in the country by giving a discount of Rs. 15,000 to buyers. Likewise, Maruti Suzuki provides discount of Rs. 65,000 on A-Star and Estilo and Rs. 20,000 on Alto.
