Sales of compact SUVs have bucked the auto industry trend during the pandemic.
The segment is the most populated in the market following back-to-back launches of the Kia Sonet and Toyota Urban Cruiser last week. With the SUV body style proving to be the most preferred among consumers, the entry-level segment is witnessing phenomenal growth even in a depressed market.
“The compact SUV segment has grown from 3.5 per cent of the total automobile sales three years ago to 13 per cent now,” said an industry source.
The segment that was made popular by Ford EcoSport has now several contenders starting with the Maruti Vitara Brezza, Tata Nexon, Hyundai Venue and now the Sonet and the Urban Cruiser.
“With so many players in the segment, there is a good traction of demand,” said Shashank Srivastava, executive director, Maruti Suzuki India Limited (MSIL). While the Brezza was initially launched in 2016 with just a diesel powertrain, the company changed strategy at the last Auto Expo with a 1.5 litre petrol engine.
“With the introduction of BS-VI, the demand for diesel in this entry SUV segment has fallen dramatically,” said Srivastava whose company has stopped its diesel programme post BS-VI.
That the segment is the fastest growing apart from the entry hatch is borne out by the numbers. Brezza has sold 1,48,000 units in 2017-18, 1,57,00 units in 2018-19. It then fell to 1,11,000 units in 2019-20 and this year it is selling 7,500 units per month on average.
Last week, Toyota launched the cross-badged Brezza as the Urban Cruiser with no changes apart from the grille. The company is pinning its hopes on the Urban Cruiser to improve its sales. “The market is recovering in the entry SUV segment and this product will help us to get the numbers,” said Naveen Soni, senior vice-president, sales and service, Toyota Kirloskar Motors.
Hyundai is upbeat on the Venue, the top selling SUV in the country for more than a year. The Venue became the best selling SUV in August 2019 pushing the Brezza from the top spot and has sold a tad less in August 2020 at 8,267 units against 9,342 units a year ago.
The Breza has sold 6,903 units last month followed by the Tata Nexon which has doubled its sales of 5,179 units last month against 2,275 units a year ago. The segment also has the Mahindra XUV 300, the Ford EcoSport with the Honda WRV bringing up the rear.
However, it remains to be seen how the two entrants, Kia Sonet and Toyota Urban Cruiser throw a challenge to the established leaders. Already, Hyundai has pipped Kia Sonet to the post with its launch of Venue’s iMT version right before Sonet’s launch. While Maruti pins its hopes on its petrol powered Brezza, the company is thinking of a CNG powertrain.
