According to research, UV(utility vehicles), which are commonly referred to as “little cars,” are becoming more popular in the Indian market, and their market share is expected to continue to rise in the years to come, according to research.
Using data from CRISIL, it can be deduced that UVs accounted for 48 percent of the total PV market in 9MFY22, up from 15 percent in FY02 (nearly two decades earlier). This is a 3,300-basis-point gain.
Even while compact vehicles are expected to expand between FY21 and FY26 at a rate of 4–6 percent, UVs are expected to grow at a rate of 14–18 percent. UV’s market share is also expected to expand steadily, from roughly 39% growth in FY21 to 51-53 percent in FY26.
There has already been a significant decrease in the percentage of tiny automobiles in India’s automobile industry. In fiscal year 2012, small cars accounted for 65 percent of total sales; in the first nine months of the current fiscal year, that figure has fallen to 45 percent.
Crisil Report
According to CRISIL’s analysis, compact cars saw a CAGR of 7% between FY09 and FY19, whereas UVs experienced a CAGR of 16%. Although some of this increase is attributable to a low base effect, new players and new models have also caused a shift in consumer behaviour, the survey states.
New models have helped the Indian market accept ultraviolet light (UV) technology as a viable choice. In FY02, there were six companies and eleven models in the UV market. Indian carmakers include Maruti Suzuki (Gypsy), Toyota (Qualis), Innova (Innova Prado and Prado), Tata Motors (Sumo & Safari), Force Motors (Trax), and Hindustan Automobiles (Hyundai Accent) (Pajero and Trekker).
It has increased from 42 models in FY13 to 68 models in FY20. Most of the Indian UV market is made up of Brezza, Creta, Ertiga, Nexon XUV300, Seltos Venue, Triber, Triber, Sonet Magnite, and Kiger.
An increasing number of consumers prefer SUV-style design, which includes an aspirational purchase before moving to a larger SUV, a taller driving position, more upright and sheer road presence, higher ground clearance, and larger tyres, as well as the flexibility and maximisation of space, according to a report from Edmunds.com.
With the rise in personal mobility and safety worries about the advent of the COVID-19 epidemic, aspirational customers are choosing a UV over a sedan or hatchback because of its stronger off-road capabilities, it says.
Market scenario in India
Maruti Suzuki India’s overall UV sales fell by around 3% in FY21 compared to 235,298 units in 2019–20, whereas Hyundai’s total UV volumes climbed by 21% at 214,167 units (176,774 units). Maruti’s share in the market has fallen to 21.59%. (24.87 percent).
Hyundai’s share of the market increased from 18.79% in FY20 to 20.19% this fiscal year. New Creta 2020 orders and Hyundai’s swift manufacturing ramp-up after lock-down helped to increase the volume of the company’s new model.
It took Kia Motors only a few more vehicles than Mahindra & Mahindra to take third place in the UV market, with 1,555,686 vehicles sold. While Mahindra’s market share fell from 18.96% in FY20 to 14.66% in FY21, Kia’s grew from 8.97% to 14.68% in FY20.
By virtue of new releases, Tata Motors’ UV sales increased by 46 percent to 86,447 units, a market share of 8.15 percent. Renault, the French automaker, maintained its lead in the UV market with sales up 20% to 51,434 units, enough for a 4.85% market share.
Compact SUVs like Kiger and Triber are both expected to enhance sales for the corporation. Amid semiconductor difficulties, the UV industry is projected to retain its sales pace as further releases are planned.
Published by – Kiruthiga K
Edited by – Kritika Kashyap
