Compact SUV now best-selling body type in India, outpaces hatchbacks

The compact SUV segment has overtaken premium hatchbacks as the most popular passenger car segment in India with one in every two vehicles sold being a 4-metre SUV. The number of sales of entry-level small SUVs under four metres has overtaken that of premium hatchbacks in the current fiscal year.

The launch of new and fresher models in this segment, the aspiration of owning a bigger vehicle in a similar price range, the upright driving stance, and higher ground clearance for better negotiating bad roads are the top reasons behind the growing popularity of compact SUVs in India. Furthermore, hatchback production has been affected by easier financing options and disruptions in the supply chain.

The number of compact SUVs sold in the first 11 months of this fiscal year was 5,94,825 as against 5,45,267 premium hatchbacks, so compact SUVs now account for 22 percent of the market share, while premium hatchbacks account for 19 percent.

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In the Indian market, the Ford Ecosport was the first compact SUV, launched in 2013. Later, other manufacturers also launched their compact SUVs in the market, like Maruti Suzuki Vitara Breeza, Tata Nexon, Mahindra XUV300, Hyundai Venue, Kia Sonet, and more.

New brands like Jeep, MG, and Kia have opted to focus solely on SUVs, while Mahindra has declared itself an SUV-only manufacturer.

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