SUVs outstrip MPVs in Indian market

Built on truck platforms, an SUV usually has 4-wheel drive, though an all wheel drive option is also common. SUVs usually feel very robust and large. SUVs are ideal for going off road and adventures. These large cars are generally driven by people who feel that that such a large car is safer than the other cars on the road. SUVs are currently all the rage with car enthusiasts in India. SUVs like the Jeep Grand Cherokee are often referred to as ‘gas guzzlers’ because of low fuel economy, but the fact is that many of them serve exceptionally well as family cars. Manufacturers of 4×4 cars were fast to realise that while MPVs had managed to form a major new car market segment in the 1990s, many of their products could easily be transferred onto their other similarly sized products. Cars with four wheel drive can be more stable in handling and maximising grip, making it a safer vehicle while changing directions, especially on slippery roads. Moreover, four-wheel drive cars are less prone to get stuck in thick snow, mud, sand or gravel, since all the four wheels get power, they can all dig for traction.

MPVs or Multi Purpose Vehicles are usually known as two-wheel drive “people movers” which are built on either a mid-sized car or a mini-van platform. They come with higher ceilings, more storage than sedans and some of the utility features of an SUV though not as robust. MPVs are ideal for large families and offer more comfort than a Crossover car. These are usually priced lower than a crossover vehicle. Meanwhile, MPVs – also referred to as minivans or people carriers – are growing relatively static and predictable in their development. After a decade and a half of continuous innovation, advances in this car segment are now more gradual. Each new model of these cars offers little more space, a minimum increase in structural rigidity, an extra airbag or two or seats that are a bit flatter than before.

Growing customer preference towards sports utility vehicles or SUVs is stifling the demand for multipurpose vehicles or MPVs from the Indian car market, with lesser number of buyers now going for those big family cars. During October, a month when car sales experienced strong growth, Honda did not produce the Mobilio, which is their MPV launched just 16 months back, as per data from the Society of Indian Automobile Manufacturers. The top 2 MPVs in India namely Toyota Innova and Maruti Ertiga, have seen their average monthly sales dropping to 4,500 to 5,000 units from the peak of 6,500 units a few years ago. Sales figures of the Chevrolet Tavera and Enjoy and Mahindra Xylo have also dipped 25 per cent from their maximum. According to Mr. Sumit Sawhney, managing director of Renault India, the MPV segment in India is reducing in size because intra-city movement of people is not seeing much growth.

Source – Indian Blue Book