Re: Is downsizing your car to a smaller one the new trend in Indian cities? I love the concept of more car per car. Cars with length 3.9 to 4m sold 101,057 units last month, capturing more than 1/3 of the market. Thats a huge share being captured by 0.1m for market ranging from 3.1m to 5m. I feel the development in this length segment has been in waves, steadily growing. I had some thoughts on how the market has evolved and have put them down below.
Even though Tata were one of the first to launch Indigo eCS they were not something which was in the radar for most families.
One of the first to launch car in this length segment was Hyundai, with the i20. The car at that time was competing with Swift. In comparison, it was not offering significantly higher space, but commanding a significantly higher price leading some to question its price.
The tag line More car per car was used by Tata, but one of the first to truly enforce it was Honda Jazz in 2009. While the market at that point was not mature enough to truly appreciate a 4m hatchback with space rivaling cars from segment above, such as Fiesta and Verna, with magic seats, and expectedly refuse to pay that money for a hatch, the market is much more mature now. The car barely made 4 digits. But what it did was make i20 look well priced. There was an uptick in i20s sales, and it quickly rose throught the ranks.
The Dzire Facelift was the car that would shake this. It went the sub 4m length, with ugly chopped of boot, but the market lapped it up. Swift with extra boot space is what they saw. The rear seat space was still a question that remained to be answered.
Manufacturers continued to improve their answers to this, everyone aiming to reach closer to Honda Jazz, while not cost as much. i20 improved its space slightly, but still not at Jazz level. 2012 Auto Expo had Ecosport launch which would become the first sub 4m SUV, along with Ecoboost engine. Booking were so much, Ford had to stop its bookings. Thailand floods caused Honda to drop price of Jazz and they received a wave of calls.
In the meanwhile compact sedan went from slap-on boot to a beautification phase. Honda Amaze was launched. Masters of managing space, provided loads of room inside, with a design which was much better proportioned than the hugely successful Dzire. This direction propelled others too. Over the next couple of years, Xcent and Aspire were launched, both quite spacious, both better proportioned than anything seen in the segment before. Xcent offered quality not seen in the segment before. While the 4m rage was going, Mahindra went ahead and launched a 7 seater MPV. Remember the Quanto? New i20 was launched, which was more spacious than its previous iterations followed by new Jazz. This was both feature rich and well priced. To cover costs, Honda moved magic seats to only the top variant.
The next big thing to happen in this segment was Vitara Brezza. As well spaced as any car in the segment, mixing the growing SUV craze with the compact length like Ecosport. The waiting for this went up to 8 months long. The new Baleno and Dzire following it was next step by Maruti in similar direction. More space, more features, less price.
Now we are seeing next level of innovations in this segment. Better engines, turbo are being provided to satisfy the power crave as people find the length ideal and dont want to move higher segments for the compactness. Diesel ATs are coming. The new Polo 2018 reviews show the innovation that has happened. Matt Watson's Youtube review was aptly titled "Do you really need a Golf" as Polo went forward in space, engine and features. Hyundai Kona is also rumored to be in similar vein.
This continuous wave of development is what is making this segment so exciting. I would not be surprised if in a couple of years, the 33% market share came close to 50% market share.
To this must credit a few manufacturers, who have brought this segment to perfection.
Tata- For practically launching the segment with Indigo CS.
Honda- For introducing space in segment
Hyundai- For introducing quality in the segment
Ford- For the compact SUV
and finally Maruti- For making it mass market! |