Utility vehicles luring customers away from sedans

The Indian passenger car market witnessed a breakthrough year (2012) in terms of vehicle sales in the utility vehicle segment. Evidently, this year the unified sales of Sports Utility Vehicles (SUV) and Multi Purpose Vehicles (MPV) outpaced those recorded by the sedans in C and D segments of the Indian auto market.

During 2012, the Indian utility vehicle market saw the addition of several exciting new products, with prominent ones being Mahindra's XUV500, Quanto, SsangYong Rexton Maruti Suzuki Ertiga and Renault Duster. Most of the new launches managed attractive sales figures within the first month of their launch, besides breaking many records in terms of advanced bookings.

As per reports, top auto majors like Mahindra and Mahindra (M&M) Limited, Maruti Suzuki and Renault had to increase their production output because of the ever increasing waiting periods of their popular models, faced by local consumers. The sedan sales dipped in India because of worsening traffic and parking related situations. It seems as if domestic consumers have lost interest in buying saloons.

Interestingly, the big price differential between diesel and petrol has resulted in the slack sales recorded by petrol-run vehicles in the country. At present, many Indian consumers are opting for diesel fuelled variants as against their petrol siblings, because of diesel vehicles' superior fuel efficiency ratings and relatively cheap cost. Further, most diesel powered utility vehicles seem like a better choice as compared to sedans for their superior space & seating offering, better power, road grip and most of all the much fawned upon All Wheel Drive (AWD) capability.

It is also a fact that Indian car aficionados consider owning a big utility vehicle somewhat of a style statement, owing to their macho road presence and mannish overall built. The raging fever for owning a compact SUV among local buyers is largely fuelled by their extremely aggressive pricing and availability of a sturdy diesel powered motor under their hoods.

The rampant increase in demand and popularity of utility vehicles segment has baffled top industry experts. More and more automotive players are lining up their SUVs and MPVs for launch in the country in the near future. The scene is completely different in sedan segment, where number of upcoming launches is small with many models being discontinued. However, one thing cannot be ignored that both sedan and utility vehicles cater to different clientele. Those wishing for a vehicle with macho style statement and off roading capability will go for utility vehicles without blinking an eye, whereas those seeking a sleek and comfortable automobile will opt for sedans. The segments are different but competition is getting more intense everyday.