In 2024 it appears that Indian consumers are showing a preference, for feature-packed vehicles over smaller cars. Interestingly the small cars that are not as popular in the market are actually playing a role in India's car exports.
The rise in SUV popularity has led to a decrease in sales of hatchbacks and sedans in India. Nonetheless, car manufacturers like Maruti Suzuki, Hyundai, Kia, Citroen, Volkswagen, Honda, Nissan, and Renault are shipping these "Made in India" cars to markets according to TOI.
For instance, Maruti Suzuki has been exporting models like the Swift Dzire, S Presso, Baleno, and Swift. The small car category that once dominated the passenger vehicle market now makes up more than 30% of the total market share. The shift towards higher-end offerings and rising prices of cars have impacted sales in this segment.
Despite this slump, Maruti Suzuki remains hopeful about a boost, from the two-wheeler market that could positively influence car sales. In the year 2024 Maruti Suzuki, the exporter of passenger vehicles, in India sent out 280,000 cars to countries such as South Africa, Saudi Arabia, Chile, Mexico, and the Philippines.
Hyundai exports not SUVs like Venue and Alcazar but sedans like Verna and Aura along with the Grand i10 Nios. These models are highly sought after in export destinations. Are produced at the Hyundais Chennai plant.
The decrease in the car category can be linked to reasons including the rising popularity of SUVs. SUVs now contribute 53.6% to the passenger vehicle sector while small cars have seen a decline. The rising prices of hatchbacks due to safety and emissions regulations have impacted their affordability for consumers.
Maruti Suzuki is optimistic about a resurgence in the hatchback segment. Anticipates growth in this market by 2026 or 2027. They foresee an improvement, in affordability leading to a revival of the car market.
Although larger vehicles are preferred by consumers overall smaller cars made in India are gaining traction in markets boosting Indias car exports.
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