CHANDIGARH: Amid growing popularity of sports utility vehicles (SUVs), the segment is set to nearly double its market share in the overall domestic sales to 55% in the next fiscal from 28% in fiscal 2018, thus eating into the market share of sedans and hatchbacks.
Anuj Sethi, Senior DirectoCrisil Ratings, said the domestic passenger vehicle (PV) sales volume should grow by 10-12% in the next fiscal, led by the SUVs. The sharper focus of original equipment manufacturers (OEMs) on the SUVs, including compact SUVs, fuelled by customer preference, is driving the growth, even as the sale of sedans and entry-level passenger vehicles remains sluggish.
According to statistics, in the fiscal year 2022, the sale of passenger vehicles decreased from 15,41,866 to 14,67,056 units, while the sale of utility vehicles increased from 10,60,750 to 14,89,178 units in the fiscal compared to the previous year. Major OEMs include Hyundai, Mahindra & Mahindra, Tata Motors, Kia India, Maruti Suzuki and Toyota Motor Corporation.
During the same period, 1,13,265 vans were sold compared to 1,08,841 units in the fiscal year 2021.
According to the data, the overall passenger vehicle (PV) sales will grow by 9-10% year-on-year next fiscal to 50 lakh units. This will be 20% above the pre-pandemic peak of 40.5 lakh units. Healthy order book driven by pent-up demand, especially of the SUVs and easing availability of semiconductors, will support the growth.