Korean car brand Hyundai has seen a surge in sales of sports utility vehicles (SUVs) from July onwards, following the launch of the Exter compact SUV.
Garnering over 66,000 bookings cumulatively since launch, the Exter has become one of the fastest-selling models for Hyundai. In 50 days (between July and August), the model clocked more than 56,000 bookings, claimed a Hyundai official, highlighting India’s shift towards SUVs as the most preferred body-type.
Speaking to FE, Tarun Garg, chief operating officer, Hyundai Motor India said “SUVs are now contributing 64% to our total sales whereas the industry is at 49%. We were 54% in H1 (January to June) while the industry was 45% in the same period.”
The expansion of the SUV segment translates to little or no cannibalisation within the segment as was feared by market watchers as there has been a battery of new launches in the SUV segment.
“Exter customers are coming from hatchbacks and premium hatchbacks. The segment has expanded. In addition, despite competition coming in, Creta volumes between January and August have grown by 20%,” Garg added.
Today Hyundai updated the Venue compact SUV by adding a new gearbox for the 1.0 litre turbo-petrol engine. It also added an advanced driver assist system (ADAS) feature to the vehicle which will provide collision warning, lane keeping assist, lane departure warning, driver attention warning, high beam assist and leading vehicle departure alert.
From having a heavy portfolio of hatchbacks and sedans, five of Hyundai’s current 11 offerings in India are SUVs. The company sells just two hatchbacks and two sedans. The balance two are electric models both of which have SUV styling.
Due to the gradual premiumisation of the market and strong product attributes, many products lined up by all manufacturers in the SUV space which will remain the most favoured choice for the next several years.
While electric vehicles and hybrids are the other segments that have enticed manufacturers, segments like compact sedans, entry-level hatchbacks are on a decline.
