THE GREAT INDIAN SUV CONFUSION

NON-CLARITY ON DEFINITION AND COMPLEX TAX SLABS MEAN IT'S UP TO COMPANIES TO DECIDE HOW TO CLASSIFY THEIR VEHICLES IN WHAT HAS BECOME A 'FREE FOR ALL' MARKET.

- ASTHA ORIEL

GURGAON-BASED Priyanka Singh replaced her Hyundai Verna with Tata Harrier last year. The 31-year-old feels that the SUV (sports utility vehicle) is more comfortable and value for money. Buyers such as Singh migrating from sedans and hatchbacks to SUVs are leading a paradigm shift in India's automobile industry, the third-largest in the world by number of cars sold. They have brought the market to a point where SUVs now account for 49% market share by volume. In line with global trends, this number is expected to reach above 60% in two-three years. SUVs are a subset of utility vehicles (UVs), which also include multi-purpose vehicles or MPVs. SUVs are designed for tough terrain while MPVs are family vehicles designed for comfort and accommodating more people. “Passenger vehicle sales are being driven primarily by UVs whose share reached close to 60% in April-September 2023 as compared with 51% in corresponding period of previous year,” says Rajesh Menon, director general, SIAM. SUVs are driving the trend.

“There is a changing consumer preference for UVs, especially SUVs, by aspirational Indians. Manufacturers have also been offering multiple models of compact SUVs at affordable prices, which is encouraging people to buy more aspirational vehicles,” he adds. Market share of SUVs in India increased from 16% in 2015 to 49% in 2023. In contrast, market share of sedans dipped from 24% to 13% and that of hatchbacks from 41% to 29%.

What Is An SUV?