SUVs had taken over the top-selling hatchback segment, and now even MPVs are emerging with tremendous growth. The Indian passenger vehicle market has witnessed significant changes in the past few years. Both segments have accommodated several new launches and are still receiving updates & more. But why did the hatchbacks get left behind?
MPVs emerging in the market
MPVs; Multi-Purpose Vehicles have been the fastest-growing segment in the Indian passenger market in 2022. After COVID-19, many buyers are opting for large family vehicles instead of hatchbacks.
Also Read: 2 Out Of 5 Cars Were SUVs In 2022 | Here’s Why!
The Economic Times report suggests that over 138,322 MPVs were sold during January-May 2022, accounting for a 54% YoY growth. The market share of MPVs has grown from 6.8% to 9.2% in 2022, with total passenger vehicle sales rising to 1,506,765, accounting for a 14% rise.
Better Practicality
SUVs have had similar but more extensive growth in the last few years. The SUV sales rose to 1,147,227, accounting for a 62% growth in 2021. MPVs & SUVs are more spacious & practical than hatchbacks with an edge of utility. They have a bigger engine & better road presence, making them better suited for long drives.
Also Read: 10 Reasons Why An MPV Is The Best Of Both Worlds In India
With numerous options throughout a diverse price range, both these segments have caught up well in the market. Reports suggest that the MPVs such as Maruti Suzuki XL6, Kia Carens & Renault Triber are significant contributors to the growth in the segment. Although Maruti Suzuki is still dominating the segment with a 55% share in the market with Ertiga & XL6, Koren carmaker Kia also performed well.
Also Read: The 10 Best 7 Seater MPVs and SUVs In India You Can Buy Right Now!
Kia managed to compete with Toyota’s best-selling candidate, Innova Crysta. Toyota sold about 23,700 units, and Kia sold 23,058 units of the Carens in January-May, while Renault only sold 13,700 units of the Triber.
Future
As buyers are choosing MPVs & SUVs, this could change the future trend too. Hardeep Singh Brar, VP & head of sales and marketing at Kia India, said the following:
“I think Covid has pushed people to be more liberal in terms of their spending, be it bigger houses or bigger cars; this is a good space to be in — SUVs are now 40% of the market, and MPVs account for another 10%. The remaining 45-50% of the market is shrinking. We would like to be in these growing segments.”
Also Read: How Kia Carens Can Change The MPV Game In India
Every manufacturer will target the growing segments with their products & updates to perform better. Kia has made its place in the Indian market because of SUVs such as Seltos & Sonet. Now it plans to achieve the same with Carens which already has an immense waiting period. What do you think about the change in trends?
