Monday, February 13, 2012
By Pawan Rana
Small cars sales slumped, SUVs charming the buyers
The Indian automotive industry has mugged through the various upheavals during the previous year including the shift in the buyer’s preferences. The market share of the compact passenger cars has been declined below 50 percent with the significant the fall in the sales. The domestic entry-level compact car segment has reported the fall of 47 percent market share and sales by 0.07 percent that include Maruti Alto, Maruti Wagon R, Hyundai Eon, Hyundai Santro, Hyundai i10, Chevrolet Beat, Ford Figo and Tata Nano.
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Whereas, the premium compact cars segment has maintained its 11 percent market share with the growth of 6.5 percent in 2011. Due to the increase in interest rates & fuel price and the unavailability of the diesel variants the sales of entry-level compact passenger cars has got declined. These disturbed market equations have forced the middle-class buyers to re-think over their decision.
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According to an industry analyst, the constantly increasing petrol price and interest rates don’t allow the middle-class buyers to go the car loan though, most of them have already charged with the home loans. Surprisingly, the SUV (Sport Utility Vehicle) market has charmed the Indian buyers by submitting the massive growth of 32 percent over the last year.
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Stunning exterior, large & cosy interior and advanced sophistications of the SUV makes it an ideal commercial and family vehicle, despite the higher cost. According to an analysis of the data collected by the Society of Indian Automobile Manufacturers (SIAM) the Indian buyers have got matured buying senses, they become are more focused towards the sophisticated premium cars and SUVs.
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As a matter of fact, the market of costly cars never got affected even in odd market situations. The demand of premium sedan cars like Hyundai Verna, Chevrolet Cruze and Volkswagen Vento has increased by 15 percent. As compare to the compact passenger cars, most of the premium car models are available in diesel variants that trim down the buyers monthly fuel bills.
According to an analyst of a brokerage firm, due to the under-penetration of the cars the compact car segment has good growth potential. With the arrival of the diesel variants and the fuel price & interest rate stability will definitely bring a new era for the compact cars.