Car Sales: Craze for UV cars, Declining demand for small cars
Car Sales | Demand for this specialty has grown significantly as a result of recent corporate scandals. Husbands and wives in the past .. who used to buy small cars to carry their two children .. now all ages .. with better driving facilities
Demand for Utility Vehicles (UVs) and Sports Utility Vehicles (SUVs) has increased. Ground clearance, large tires make SUVs comfortable for long journeys. UV cars are a good option. According to a Crisil study, sales of utility and SUV models increased by 48 percent in passenger car sales between April and December last year. In 2002, they were only 15 percent. Utility vehicle sales have grown 33 percent in the last 20 years. Crisil expects demand for utility and SUV variant cars to increase further than other segment cars by 2021-26.
18% Growth in Utility Car Sales
While utility cars sold 39 percent last fiscal year, they grew 14-18 percent this year. Crisil expects sales of large utility cars to grow by 51-53 percent by 2026. Sales of SUVs such as Breza, Creta, Ertiga, Nexan, SUV300, Celtos, Venue, Sonnet, Magnite, Kager, 70-80 were up. At the same time, only 4-6% growth was recorded in small car sales. Other segments are overtaking the small car market in India. In 2012, small car sales accounted for 65 percent.
UV demand increases every year
While small car sales were up to seven percent between 2009-19, sales in the utility segment grew by 16 percent year-on-year. Car manufacturers are also making new model cars to suit the tastes of the customers. In 2002, six companies launched 11 UV cars, and in 2020 the number of new model cars launched by the car manufacturers increased to 68.