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Utility vehicles: Little gas beyond Maruti and Hyundai

Most automakers are consolidating their portfolio, as they realise that the market has already picked the winners.

, ET Online|
Updated: Feb 19, 2018, 12.40 PM IST
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Decoding the hypeUtility vehicles (UVs*) under Rs 15 lakh are the fastest-growing segment in the car industry, and the segment on which the industry's growth ambitions and investments are pinned. However, ET Online analysis indicates that an outsize share of this growth comes from only three models, Brezza and Ertiga from Maruti and Creta from Hyundai, respectively. Most automakers are consolidating their portfolio, as they realise that the market has already picked the winners. 62949641 Highlights from our analysis"Although UVs have shown volume CAGR of 16.5% over CY11-17, excluding Maruti and Hyundai the growth is only 7.2%, lower than the 7.8% in the overall passenger car segment. "The models launched since 2012 cornered two-thirds of the industry volume in 2017. Models launched before 2012 have declined in absolute numbers. 62949647 "...

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Utility vehicles: Little gas beyond Maruti and Hyundai
Maruti's Brezza has been one of the growth drivers in this segment.
Decoding the hype
Utility vehicles (UVs*) under Rs 15 lakh are the fastest-growing segment in the car industry, and the segment on which the industry's growth ambitions and investments are pinned. However, ET Online analysis indicates that an outsize share of this growth comes from only three models, Brezza and Ertiga from Maruti and Creta from Hyundai, respectively. Most automakers are consolidating their portfolio, as they realise that the market has already picked the winners.

graph-1


Highlights from our analysis
"Although UVs have shown volume CAGR of 16.5% over CY11-17, excluding Maruti and Hyundai the growth is only 7.2%, lower than the 7.8% in the overall passenger car segment.

"The models launched since 2012 cornered two-thirds of the industry volume in 2017. Models launched before 2012 have declined in absolute numbers.

graph-2


"Interestingly, Google searches for SUVs peaked in 2012 with the coming of age of the compact SUV segment. Search activity has since failed to keep pace with the optimism around SUVs in the industry. Data from automobile website CarWale also echoes this trend.



Eyes on two new entries, but ...
Korean automaker Kia and MG from China's SAIC Motor have announced plans to launch SUVs in India in 2019. While this has generated excitement among industry watchers, hard numbers suggest the fate of the sector will continue to ride on Maruti and Hyundai.

*UV and SUV are often used interchangeably.

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