Is the hatchback segment dying: A detailed look at hatch vs SUV sales

The decline in the hatchback segment continues and has been exacerbated by high inflation

BHPian JDMBOI recently shared this with other enthusiasts.

Hatchback sales numbers:

Economic Times article:

The decline in the hatchback segment continues and has been exacerbated by high inflation affecting the purchasing power of those who either want to purchase their first vehicle or upgrade from a two-wheeler.

Maruti Suzuki chairman, R C Bhargava, reiterated that the focus is now shifting to what the customer wants - SUVs.

"Next year, there will be degrowth in the hatchback segment. The purchasing power of hatchback segment has been affected and hence, is not growing. The production capacity will come down from 70 per cent to what the market needs," Bhargava said.

SUV sales numbers:

Economic Times article:

Sport-utility vehicles (SUVs) now make up half of all passenger vehicle sales in India, doubling their market share in five years. This shift in buyer preference towards bigger, feature-rich vehicles has come at the expense of once-popular small cars.

As much as 52% of the 363,733 passenger vehicles sold in September were SUVs, a record for a month, increasing their market share from about 43.6% in September 2022.

SUV sales have grown to comprise 48.3% of total vehicle sales in the first six months of this fiscal year, up from 41.5% in H1FY23. The share of hatchbacks has slipped to 30% in H1FY24 from 35.1% in the same period last fiscal. Despite launches of several new models such as Hyundai Verna, Volkswagen Virtus and Skoda Slavia, the share of sedans, too, declined to 9.3% in the fiscal first half from 10.3% in H1FY23.

Source.

Note - Top 10 is based on last 13 months data:

Reasons why people shift to SUV (compact):

• Crowd psychology/herd mentality.
• Increase in disposable income.
• Not many good options in hatchback segment.
• Increase in average cost of hatchback.
• Buying a secondary car.
• Safety.
• Ground clearance (least important reason IMO)

Conclusion - Looking at the graph, we can say SUV sales are increasing at good rate and might hit two hundred thousand mark, if this trend continues. While, hatchback segment has seen a decline in the sale but still doing consistent number (around one hundred thousand) so short answer is hatchback market is still alive.

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