Rs 34-50 lakh SUVs see their sales fall by 18%

Sales of models like the Hyundai Tucson, Jeep Meridian, and Toyota Fortuner have dropped by 18% in the first 5 months of this fiscal.

SUVs have fuelled the post-pandemic growth of the Indian car industry. However, the latest figures suggest that sales of SUVs in the Rs 34-50 lakh bracket are slowing down.

According to media reports, sales of models like the Hyundai Tucson, Jeep Meridian, and Toyota Fortuner have dropped by 18% in the first 5 months of this fiscal. On the other hand, the midsize SUV segment has grown 6.3%, which reflects the changing consumer preferences.

Passenger vehicle sales in FY2024 were 4.22 million units. However, post-pandemic growth now appears to have slowed down. During the period of April-August, industry growth slowed down to under 2% with 1.75 million units sold.

SUVs have dominated the premium segment for years. However, with more options available in the sub-Rs 20 lakh segment, some customers are opting for these vehicles. Out of the 48 SUVs currently sold in India, less than a dozen are in the premium segment priced above Rs 20 lakh.

The 20 lakh-plus segment also offers a variety of options, including feature-rich midsize SUVs like the Harrier, Safari, Creta, Alcazar, Scorpio N, and XUV700. According to Jato Dynamics, there has been a surge in demand for SUVs and MPVs in this segment.

Source: ET