For the very first time, the Indian automobile market has witnessed dip in shares of small cars, below 50%. Small car models such as Maruti Suzuki Alto, Chevrolet Beat, Tata Nano and Hyundai Eon comprise the largest segment at 47%. However, owing to the 0.07% decrease in sales in 2011, this figure has reduced compared to SUVs and premium sedans. Comprising 11% market share in the India, the premium hatchback segment that includes Volkswagen Polo, Hyundai i20 and Maruti Suzuki Swift grew at 6.5%.
Majority of Indian buyers have refrained from purchasing cars due to high interest rates, increased fuel prices and inflation. The unavailability of diesel variants in small car segment is another cause for the reduced market share. The presence of diesel variants under premium cars has prompted customers to shift their preference from entry-level cars. This is the reason why premium cars, which presently have a market share of 19%, have recorded increase in demand.
Sports Utility Vehicles (SUVs), Indian as well as imported, witnessed an impressive growth of 32% in the year 2011. The growth of this segment last year is attributed to the introduction of new models, facelifts and diesel variants. The change in preference of Indian customers for SUVs and premium cars shows that people are looking for better products. If this positive trend continues, the Indian automobile market will see launch of several better vehicles that are at par with international standards.
