Have money, wiil show is the new mantra of the wealthy. No point in having wealth if you can’t flaunt it seems to be the refrain as India rises on the wealth chart. And adding to the status symbol list of the rich and the elite in India is the sports utility vehicle (SUV) – a barometer of wealth.
With politicians, realtors, mine owners and contractors who are known to flaunt an Audi, a BMW or a Japanese SUV from Toyota or Mitsubishi, today’s professionals, self employed people, wealthy housewives and even young company executives are keeping pace by buying a luxury car of their own. Taking advantage of the surge in demand for this high end cars are domestic and multinational car brands, who have lined up over one and half dozen SUV models in India.
According to the auto companies and experts, the demand for SUV’s has skyrocketed in the last few years. This segment which includes multipurpose vehicles(MPV’s),constitutes 14 percent of the passenger car market in India and is slated to grow about 25 percent by 2014,given the way the craze for SUV’s is spreading even across the supposedly poor region of Bihar, Jharkhand and Odisha.
According to the society of Indian Automobiles Manufacturers (SIAM) findings, the sales of SUV’s and MPV’s grew by 16 percent to 3.67 lakh units in 2011-12, while car sales witnessed only 2 percent growth. A total of 26.18 lakh passenger cars were sold in India in 2011-2012, making it the world’s fastest growing automobile market after china.
The SUV’s will soon be the hottest segment in India and with varied options; it could become the fastest growing category in India, given the vast number of future customers. Said automobile analyst Abdul Majeed, PWC.
Nearly a year after Mahindra XUV 500 cause a storm in the Indian automobile market, French car maker Renault is set to create history with a new compact SUV for the Indian market. If XUV 500 caught the fancy of those who could afford or stretch their budget to buy a 13 lakh to 17 lakh vehicle. Renault duster with a starting price of 7.2 lakh ex show room will convert any sedan buyers to SUV customers.
Designed by Dacia, Romanian carmaker owned by Renault, Duster is one of the cheapest SUVs in the world. Over 7000 Dusters have been booked since its launch in June as this SUV is priced in the range of sedans like Honda City. Eight variants are available both in petrol (two) and diesel (six) categories.
Duster gives over 20 kmpl in diesel and 14 in petrol. Renault enjoys the first mover advantage in the compact SUV segment in India as its competitors are no match to its pricing and quality. Skoda Yeti costs over 1 lakh while the premier Rio which starts at 5 lakh has plenty of technical issues and is not in great demand.
According to the analysts the Duster will directly compete with Tata Safari, Mahindra Scorpio and some of the compact SUVs to be launched shortly. It will also compete with successful sedans available in the market. Duster could well become a game changer for the industry as Renault has lowered the threshold price level of a premium product to compete directly with M&M,Tata Motors,Maruthi Suzuki and Hyundai to name a few.
Mahindra likely to feel the maximum heat from an affordable Duster is coming up with a new vehicle called mini-Xylo priced much below the Duster. It is expected to be priced around 6 lakh. Ford is getting ready to launch a similar vehicle called EcoSport in India while Maruthi is planning to launch a compact SUV called XV alpha.
Hyundai is also planning to bring a similar product codenamed HND 7.Tata Motors is also planning to launch the new and improved version of the Tata safari called Safari Storme. Mahindra which is basking in glory after the huge success of XUV 500 is gearing up to bring in Korando C and Rexton from its Korean subsidiary Ssang Yong.
Maruthi is now planning to bring in fuel efficient, stylist and compact MUVs at affordable prices. Shinzo Nakanishi,MD & CEO of Maruthi Suzuki India Ltd(MSIL), confirmed this when he said that the company has devised a strategy to bring in multiple models in the multi utility vehicle(MUV) and multipurpose vehicle(MPV)domain, where MSIL has almost negligible presence.
A few months ago, Maruthi has launched Ertiga in India which had met with huge success. Over 35000 Ertigas have been booked and there is a huge waiting period. SUVs which command respect on the roads boost their owner’s ego while riding comfort and safety are add-ons. The craze is here to stay
