2020 Auto News Indian automobiles Sub-compact SUV The Automobile News

Sub-Compact SUVs Remain in Demand Despite Auto Sales Slump in India

The Indian automobile industry has been struggling since last year. However, the sub-compact SUV segment is witnessing robust demand and has increased market share from 14 to 18 per cent in October 2020.

The Indian automobile sector has been struggling since last year and the coronavirus outbreak has made things worse. Much to everyone’s shock, the auto sector reported absolutely no business for a few weeks during COVID-19 induced lockdown. Even after the lockdown, things have only started approaching normalcy but car sales in India are still weak as compared to last year. Of late, there has been a surge in the demand for entry-level hatchbacks as many people are now shifting to personal mobility from public transportation. However, there’s another segment that has grown over the last year — sub-compact SUVs. The demand for sub-four metre SUVs in India continues to grow despite an overall slowdown in the industry. 

According to some reports, the sub-compact SUV segment in October 2020 reported 57 per cent sales growth as compared to October 2019. This was largely due to the launch of new small SUVs like Kia Sonet and Toyota Urban Cruiser. Kia sold 11,721 units of Sonet in October 2020 while Toyota retailed 3,006 units of Urban Cruiser. Apart from these, several other sub-compact SUVs in the country reported sales growth in October 2020 as compared to the same period last year.

Maruti Suzuki Vitara Brezza’s sales increased by 18 per cent while Tata Nexon reported a 55 per cent sales growth in October 2020 as opposed to October 2019. And while Hyundai Venue’s sales in October 2020 increased by three per cent, XUV300’s sales clocked a stunning 60 per cent growth.

Overall, sub-compact SUVs market share in India increased to 18 per cent in October 2020 as compared to 14 per cent in October 2019. This shows that the sub-compact SUV segment has easily managed to buck the trend. Robust demand for small SUVs was observed last month as well with vehicles like Sonet, Venue, and Brezza racking up substantial sales. For reference, Kia sold 11,417 units of Sonet last month while Hyundai sold 9,265 units of Venue. And as for Vitara Brezza, the Indian carmaker sold 7,838 units of the SUV. 

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