New Delhi: The SUV phenomenon in India shows no signs of slowing down, according to a recent report by CarDekho Group’s New Auto segment. The comprehensive study unveils a significant shift in consumer preferences, with SUVs leading the charge in the Indian automotive market.
As per the report, SUV sales have surged by 11% year-on-year between April and July 2024, marking them as the only vehicle type to achieve such notable growth during this period. This surge is not just a sales anomaly; it mirrors the increasing consumer interest reflected in online activity. The SUV segment now accounts for a staggering 64% of all automotive traffic on CarDekho’s platform as of July 2024, highlighting their overwhelming popularity among prospective buyers.
The correlation between online interest and actual sales is evident, with SUVs not only dominating search traffic but also leading in lead generation, indicating strong market demand. The report underscores that this trend has persisted throughout FY25, further solidifying SUVs’ market dominance.
However, not all segments share this success. Hatchbacks, which still account for 22% of online traffic, have struggled to convert this interest into sales. This disparity suggests that while hatchbacks remain a popular search choice, they fall short in driving actual purchases compared to the more coveted SUVs.
“The automotive landscape in India is undergoing a significant transformation, with SUVs at the forefront of this change,” said Mayank Jain, CEO of New Auto (CarDekho Group). “The growing consumer preference for SUVs, bolstered by features typically found in hatchbacks and sedans, such as the monocoque chassis, has made them increasingly accessible. Compact SUVs, in particular, offer premium features and enhanced suspension dynamics, bridging the gap between affordability and luxury. As the price difference between hatchbacks and compact SUVs narrows, we expect this upward trend for SUVs to continue.”
This report highlights the ongoing evolution in India’s automotive sector, with SUVs carving out an ever-larger slice of the market, while other segments struggle to keep pace.
