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Auto trends: Demand for SUVs overtake MPVs
At 1,60,000 units sold during Financial Year 2015/16, share of MPVs as compared to SUVs has dipped to 25% from 35% four years ago. It is with this noticeable reduction in MPV sales that General Motors India has stalled launch of the new Spin MPV which was slated for launch later this year or in early 2017.
Automakers in India have noticed a changing trend with more buyers opting for SUVs as against MPVs.Over the last few years, sales of Multipurpose Vehicles (MPVs) have tumbled in India. What has replaced them, is compact Sports Utility Vehicle (SUV), which has seen overwhelming response.
At 1,60,000 units sold during Financial Year 2015/16, share of MPVs as compared to SUVs has dipped to 25% from 35% four years ago. It is with this noticeable reduction in MPV sales that General Motors India has stalled launch of the new Spin MPV which was slated for launch later this year or in early 2017.
The company has stated that in keeping with customer’s demands it will now turn their attention to launch of new models in the SUV segment. On the same lines, Hyundai Motors India has put plans on hold to develop a new MPV codenamed IP as on date, while a new sub 4 meter SUV is in the making, planned for launch in 2019.
GM India has also revealed that its Beat Activ, showcased at the 2016 Auto Expo is slated for launch in the coming months. The small crossover has received outstanding response.
Speaking about the story of MPV sales declining, Honda Mobilio MPV sales have declined 74% in FY16 to stand at just 8,000 units while Renault Lodgy has also sold just 9,752 units. The auto sector which grew by 7% in FY16 saw sales in the MPV segment dip by 17% while sales of midsized SUVs grew by 10% and sales of sub 4 meter SUVs increased by 60%.
The two MPVs who are currently keeping the boat floating for the segment in the Indian auto industry are Toyota Innova Crysta and Maruti Suzuki Ertiga, both registering good sales.
This article has first appeared in Rushlane.com
