SUVs: The Big Hunk in Town
Automotive industry is a major contributor to the Indian economic growth ever since 1991, when the FDI policies permitted 100% investment. Ever since then, it has been growing by leaps and bounds.
Beginning from a history of just few players, we have come a long way establishing ourselves in the global market as the 7th largest producers of Automotives. The car sales are projected to reach the 5 Million units mark by 2015 and more than 9 Million by 2020.
SUVs once a niche market is threatening to become the main contributor to the passenger car market. The new trend which seems to have gripped the nation's premium segment is to own a SUV. From politicians to top industrialists, cricketers to actors; all seem to want to own at least one SUV. No company has any doubt regarding the fact this be it in any sector, the Indian market is the best market to sell in.
There is an American song which goes by the lines
“ God bless my SUV
The first car in history
To start a war
Now don’t look at me with scorn
Or I will turn all your rice and corn into fuel
For my car that’s going
To destroy the earth entirely.
I don’t care for starving Africans
I’m an American…..
Born to be selfish from day one.
So don’t complain to me
About poverty or pollution
Just let me fill up my SUV….
So I can drive some more”
This song states the mind of American SUV buyers and its just that trend which is catching up with the Indian buyers as well. So you see, the rising fuel prices are no big deal for SUV buyers.
The Society of Indian Automobile Manufacturers (SIAM), had revealed that in the fiscal, April 2009 to March 2010, the sales of SUVs noticed 20.88 percent rise. A total of 272,733 units were sold against 225,621 units in the same period a year ago. Official figures reveal, India has 14 million cars and three million SUVs. Currently the SUV market segment is dominated by Mahindra and Mahindra, the largest SUV producer in the country, Tata Motors and Toyota Kirloskar Motor, Fiat India, Ford Motors, Force Motors, General Motors, Hyundai Motors, Nissan, Porsche, etc. are some of the most well known ones.
What better vehicle can one have than an SUV?
The bigger the better it is!
SUVs just right for the Indian crowd and the humpy bumpy roads in India. The auto companies are one of the companies which see India as one of the booming markets. The heavy weights in this sector are now targeting SUVs as another revenue generating opportunity. Apart from just earning big bucks, these companies are giving equal importance to customer satisfaction to create a base of satisfied and contended clients.
Mahindra & Mahindra is showcasing its brand new XUV 500 to take over the new segment of SUV which is India’s first cross over design followed by Mahindra competitors’ like Renault, Tata, Toyota, Skoda, Honda all are coming up with their new autos to heat up the market further.
With increasing market demand experts say that even more players will enter the market in near future. The Indian roads have welcomed not just entry- level utility vehicles like the Mahindra Bolero and Tata Grande but also classy SUVs like the VW Tiguan and BMW X5. As the Indian economy takes a turn for the better, the lifestyle is also changing and traveling and weekend getaways have become common.
This analysis shows us that the SUV makers are targeting the mass premium market in India. The previous year showed a growth of 80% in sales. With more players coming in, the potential market will only get bigger and better. The aspirational element is drawing more and more people towards the SUV segment.
Overdrive – “Force one” – Sirish Chandra – September’11 - Page no 102.
Overdrive – Second shot - Hally prabhakar – September’11 - Page no. 114.
Auto India – SUV Star, Driving Experience – Bolo Rupani - September’11 – Page no. 52-54.
Auto India – MUV Over Buddy – Jamshed Patel – September’11 – Page no.44.
Auto India – Catalogue Jist – Page 121-124.
http://www.knowindia.net/auto.html - Market Shares of Brands.
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