Are Sedans on the Road to Demise?

C-segment sedans, namely Verna, City and Ciaz have witnessed a significant reduction in sales volume as YTD July 2024 wholesale data suggests. When contrasted with the sales data from January- July 2023 with the same period in the consecutive year, 2024, the Verna has fallen from 19344 sold units to 11,364. In a similar pattern, the City has dropped from 13,122 to 7,117; the Slavia from 10,835 to 8,443; and the Ciaz from 7,193 to 4,206. 

While the above data suggests a significant degrowth for all sedan models, the Virtus shows minimal growth in comparison to the other C-segments, with sales volume increasing from 11,395 to 11,572 in the same time period, keeping hopes alive for the otherwise declining sedan market. However, Hyundai Creta, a prominent model in the SUV segment, registered sales of 17,350 from 14,062 in the same time frame. 

Sedans now occupy a much lower market share, occupying only 10% of the passenger vehicle market while their corresponding SUVs account for nearly 52% of the Indian automobile market. With such figures in place, is the sedan market in India on its path to perish?

Why is the sedan craze dying in India?

Analyzing dying sales volume of sedans in India presents several factors such as bodystyle, road navigation, smooth ride experience and price comparison with SUV and hatchback segments. 

Sedans provide a bodystyle with low ground clearance which implies that it may be difficult to drive on bumpy roads or roads laden with obstacles. In contrast, SUVs have a higher ground clearance with a superior seating position and visibility that appeals to the Indian buyers. 

Market needs are also prone to road conditions in the country.  When it comes to maneuvering and parking in congested urban Indian roads, C-segment sedans usually fall flat in comparison to hatchbacks which are far more convenient. For buyers who are unbothered by the road conditions, go for SUVs that come equipped with more headroom at a similar pricing range as sedans. This leaves sedans in the middle, appealing only to the luxury needs of buyers.

Sedans are almost at par with SUVs in terms of the budget factor. For instance, the Hyundai Verna and Creta both are priced at an initial amount of Rs 11.0 Lakh, which again puts sedans at a backfoot to SUVs when tallied against the features both provide. 

Despite a higher fuel economy than SUVs, which use more gas than sedans due to their generally greater weight and size, sedans are being easily trumped by SUV segments in the market.

What is the future of Sedans in India?

Sedans, however, still appeal to driving enthusiasts due to their aerodynamic features which provide a smoother and more engaging driving experience on urban roads. That said, it is a matter of contention whether sales volume of the segment will revive in the near future.