Indian families are increasingly buying 7-seater SUVs, MPVs: Here's why
What's the story
India's automobile market is witnessing a major shift as families increasingly opt for vehicles with more seating capacity.
Seven-seaters are fast becoming the go-to choice for SUVs and MPVs (multi-purpose vehicles).
The trend isn't just limited to large joint families but is also being embraced by smaller families looking for flexibility in their transportation options.
Market dominance
Seven-seaters now account for 78% of SUV sales
According to data from Jato Dynamics, a firm that specializes in automotive analytics and intelligence, seven-seater SUVs account for 78% of sales in the segment for vehicles over 4.5 meters long.
This is a major jump from just 58% in 2022.
Meanwhile, the share of five-seater SUVs has dropped to just 18%, down from a whopping 43% earlier.
MPV trend
Dominance of 7-seaters in MPV segment
The trend isn't just limited to SUVs. In the case of MPVs longer than four meters, seven-seaters now command an impressive 86% of the market.
Nalinikanth Gollagunta, CEO of Mahindra & Mahindra's Automotive Division, said even smaller nuclear families are opting for these vehicles due to their flexibility for accommodating guests or long road trips.
Changing demographics
Buyers' age for Ertiga has dropped to 37 years
Partho Banerjee, Senior Executive Officer at Maruti Suzuki, revealed that young buyers are increasingly opting for MPVs due to their versatility and evolving family needs.
He noted that the average age of buyers for one of their best-selling seven-seater MPVs, Ertiga, has dropped from 40 years to 37 years in the last five years.
Market share
Shift in configuration demand is structural, not cyclical
The seven-seater trend is evident in Maruti Suzuki's MPV portfolio as well, with Ertiga leading the segment.
Ravi Bhatia, President of Jato Dynamics, said this shift in configuration demand isn't cyclical but structural.
He added that it reflects a deeper lifestyle evolution among consumers who are increasingly looking for space and flexibility in their vehicles.
Feature enhancement
MPVs now account for 11% of auto industry sales volume
As SUVs continue to dominate sales, families are also looking at the space and flexibility offered by MPVs.
They now account for 11% of the auto industry sales volume, up from 8% in FY22.
Hardeep Singh Brar, Senior Vice President and National Head of Sales and Marketing at Kia India, said their MPV Carens offers features usually found in SUVs, such as connected car technology, ventilated seats, and a sunroof.