Globally, demand for SUVs has been on the rise. In India, the place smaller automobiles have lengthy been most well-liked, SUV gross sales have notably elevated in recent times, difficult standard tendencies. This shift might be credited to the engaging options inherent in SUVs, together with elevated seating, fashionable design, spaciousness, and a commanding highway presence. These compelling attributes have efficiently captivated discerning shoppers, marking a departure from the nation’s historic preferences.
Rising SUV development
The worldwide SUV market is poised for substantial progress, anticipated to succeed in USD 1,221.7 billion in 2027 from USD 885.8 billion in 2023, reflecting a gradual 6.6% annual enhance. In FY2023, SUVs and UVs comprised of fifty% of whole automobiles offered, with 12 out of the highest 25 promoting automobiles falling into this class. With a wide range of fashions spanning totally different worth ranges, SUVs meet various client wants, and their enhanced consolation options solidify their dominance on our dynamic roads.
Altering buyer preferences
In India, the rising fondness for SUVs isn’t solely pushed by navigating by way of difficult landscapes but in addition by aspirational values to personal one. SUVs, as soon as perceived as costly and restricted, have gained immense recognition amongst shoppers resulting from evolving security rules and narrowing worth gaps inside segments. This has largely catalysed the shift in automobile aspirations in the direction of SUVs, notably pushed by the rising and extra prosperous center class. The socio-economic profile of SUV consumers displays a want for automobiles that mix practicality with luxurious, embodying a way of life that caters to each city comfort and adventurous pursuits as these automobiles stand out for his or her increased floor clearance, strong construct and their go wherever functionality.
Moreover, the shift in SUV building from body-on-frame to monocoque buildings has improved dealing with, experience high quality, and security, whereas enhanced gas effectivity and have richness provides to their enchantment. Some producers have competitively priced SUVs in opposition to hatches, broadening accessibility. The widespread embrace of SUVs by shoppers signifies an enduring development within the dynamic Indian automotive panorama.
Segmentation of SUVs
The rising purchaser enthusiasm has resulted in an abundance of SUV classes within the Indian automotive market. From UVs and SUVs to compact SUVs, from sub compact to micro SUVs – there’s something for all types of consumers. This diversification has additional allowed producers to introduce e-SUVs, combining SUV utility with inexperienced powertrain effectivity, interesting to environmentally aware consumers as nicely. It has been famous that trendy shoppers prioritize superior options like related automotive know-how, a number of airbags, and panoramic sunroofs – reflecting a big shift of their preferences through the years. OEMS immediately have efficiently tapped this ‘need-value-aspirational’ bucket by combining utility with car-like consolation options.
Advertising and branding
Advertising and branding have considerably influenced the notion of SUVs, transitioning them from being seen as pricey behemoths to being thought to be premium, subtle, but strong automobiles. By focusing on the youthful demographic with charming commercials, revolutionary social media campaigns and superstar tie ups, automakers search to not solely promote a product but in addition endorse an interesting life-style.
The Path Ahead
The surge in recognition of SUVs in India has been outstanding, displaying no indicators of slowing down. This heightened demand has put appreciable stress on different segments, notably hatchbacks and sedans. Producers have strategically positioned their SUVs by understanding client wants and needs, emphasizing versatility, customizable options, cutting-edge know-how, security measures, and interesting financing plans. As extra SUV fashions enter the market, the importance of promoting and branding in influencing client selections and boosting gross sales stays paramount for the foreseeable future.
( Disclaimer: Vinay Pant is Head of Advertising at Tata Motors Passenger Autos Ltd. Views are private.)
