Car sales in 2022: Indians favored SUVs over everything else
For the first time in India's automotive history, the SUVs have surpassed hatchbacks and sedans to become the largest-selling body type this year. The SUV segment managed to overtake the humble hatchback category. As per the data sourced from Jato Dynamics, the overall sales of hatchbacks stood at 1.24 million units as opposed to 1.47 million units of SUVs in 2022.
Why does this story matter?
- SUVs have become one of the most popular body types all across the globe. The rugged built quality, spacious cabins, and the 'go-anywhere' nature have been the top contributor to the rise in demand for the SUV segment.
- In India, the rugged category has surpassed the 'almost extinct' sedan segment in recent years but had a steep challenge in form of the hatchback.
Why are SUVs so popular?
Ravi Bhatia, president of JATO Dynamics India said, "The SUV body style allows an OEM to earn more profit than on the hatchback platform, which is evident from the SUV launch activity." "They are popular because of their high driving position, which gives a sense of safety when driving, especially to the older people." Higher ground clearance also adds to the overall convenience factor.
SUVs accounted for 42% of India's passenger vehicle market
In 2022, SUVs accounted for 42% of India's overall passenger vehicle market as opposed to the nearly 35% share of hatchbacks. The data from Jato Dynamics shows that the former managed to reach a sales figure of 1.47 million units, whereas the latter managed 1.24 million units this year. Sales of SUVs have doubled in the last four years.
Will sedans and hatchbacks exist in the automotive future?
While seeing the current trend, it is easy to assume that SUVs will be the number one choice for most people around the world. However, we believe that the market for hatchbacks and sedans will exist in the future as they both offer some advantages over rugged SUVs. Also, it is easier to use the low-slung body styles in motorsports over the high-riding SUV.