UV segment is the hottest, more players to test waters making it the most crowded segment in years to come.
Some facts:
- The fuel policy and discontinuation of Diesel fuel type by a few OEMs, has resulted in a huge decline in the contribution of Diesel Engine Cars - The shift has happened to
Petrol Cars – which contribute over 83% of the total volumes now.
- In spite of a yearly volume of around 27L cars, more than 84% of the market is controlled by just 5 OEMS - Maruti/Hyundai/Tata/Mahindra/Kia
Body Type wise volume
-Hatchbacks are the major chunk of the Industry, contributing to around 50% of the industry. However, the Hatchbacks and Sedans are declining at a pace higher than the total industry.
-The UV and MPV now combined contribute more than 45% to industry. They are also preferred by most income group levels.
-The UV and MPV segments have grown due to some excellent products, that have been captured the customer's interest
-A lot of UV and MPVs are being planned to be launched in FY2021-22.
-Interestingly, Mahindra has been displaced from its perch of “ India's Top UV Manufacturer” by Hyundai. Now has plans to get back to its SUV game by restructuring of its Product Portfolio .
CONTIRUBTION OF ALL BODY TYPES OVER THE YEARS
-UV and MPV now contribute to about 45% of the industry.
GROWTH OF ALL BODY TYPES OVER THE YEARS
- The Pandemic could deal a death blow to the shared mobility platform – that is largely Sedan dependent.
Sedans continue to drop in demand:
-Diesel Sedan was no longer the first preference for upgradation from a hatchback thanks to the non-existent price differential between diesel and petrol.
-The aggregator model used Sedans largely, has reached a matured level of numbers.
-Customers upgrading from Hatchbacks directly to SUVs.
-Pandemic has dealt a death blow to shared mobility and long-distance traveling.
CONTIRUBTION OF SEDAN SEGMENT OVER THE YEARS:
Hatch Backs and its decline :
-The major markets of Maharashtra, Delhi, Gujarat, Karnataka, Kerala, Tamil Nadu, Uttar Pradesh, which account for more than 70% of hatchback sales have seen a consistent drop.
-Non availability of Diesel from many OEMs and shift to BS6 at a higher price range, has made customers spend a little more for the UV segment.
- Increased activity by the OEMs focussing on product development and up gradation in SUVs, for higher realizations.
- BS6 implementation and the high consequent price rise also affected the demand.
UV's have had a dream run: the Hot segment
- Hyundai, Kia, and Tata, with their UV models, have driven the demand. And in spite of most models of Mahindra declining, this has been offset by the performance of the others.
- The Thar has been a runaway hit for Mahindra; and driving demand for the company.
- The success of the UV segment has seen the other players like MG, VW, Skoda, Mercedes, Toyota, Ford to be very optimistic on India and plan a slew of launches.
CONTIRUBTION OF UV SEGMENT OVER THE YEARS:
- UV body type is here for the long run, so either OEM's get their best value cars in this segment or they are in for rough weather
Link