CarDekho Analysis: SUVs Surge With 43% Year-Over-Year (YoY) Traffic Growth Across All Sub-Segments

The Indian car market has evolved over the years, and customers' top preference today is SUVs over any other body style

• The mass SUV segment witnessed the strongest growth, boosting its contribution from 50% to 63% of overall traffic on the CarDekho platform
• Subcompact SUVs (sub-4m) remained the most popular SUV sub-segment, posting 37% YoY growth in traffic.
• Executive SUVs showed the highest growth within the SUV category, registering a 47% YoY increase, with traffic contribution rising from 15% to 19%, whereas the midsize SUV sub-segment saw a solid 31% YoY growth.
• Luxury brands experienced 17% YoY growth across all model pages.
• The mass hatchback segment grew by 28% YoY, driven by a 31% rise in traffic for premium hatchbacks.

New Delhi : Analysing the heightened consumer activity during the festive season, CarDekho has released its latest Festive Trend report. The report captures the pre-festive season traffic trends across various sub-segments of the 4-wheeler passenger vehicle industry, comparing traffic volumes between April and September of last year to the same period this year. The data underscores significant changes in consumer demand and preferences, with SUVs continuing their dominant streak as the vehicle of choice across demographics. This surge in demand is attributed to the availability of 58 SUV models currently in the market, with further launches expected in FY25. Additionally, the segment offers a broad range of fuel and engine type combinations, catering to diverse consumer needs and providing tailored options to suit varying preferences.

The mass-market SUV segment led the growth in the automotive market, registering a strong 43% year-over-year (YoY) increase in traffic. Its contribution to overall traffic on the platform rose from 50% to 63%, making it the most dominant body type. While all SUV across sub-segments displayed significant growth, the subcompact SUVs (Sub-4m) sub-segment led with 37% YoY growth, increasing their traffic contribution from 32% to 38%. Notably, the average selling price of hatchback models has been rising, further narrowing the price gap between hatchbacks and compact SUVs, which is contributing to the increasing consumer shift toward SUVs. Additionally, executive SUVs saw the highest growth within the SUV category, showing a 47% YoY increase, with its share rising from 15% to 19%. The midsize SUV sub-segment also performed well, with a 31% YoY increase. 

In the mass-market hatchback segment, traffic grew by 28% YoY, driven largely by premium hatchbacks, which make up 86% of the total traffic in this category. Premium hatchbacks experienced a 31% YoY growth, while mini hatchbacks grew by 20%. However, micro hatchbacks saw a 22% decline in traffic, indicating a shift in consumer interest away from smaller, ultra-compact vehicles.

Also Check Out: All Special Edition Compact SUVs Launched For 2024 Festive Season

Sedans showed the lowest growth among all body types, with an 18% YoY increase, maintaining a consistent 15% share of overall traffic. Despite this, the premium sedan segment saw a significant 65% YoY growth, even though it is driven by just one model. However, this sub-segment’s contribution remains at only 1% of total site traffic.

“The continued growth of the SUV segment reflects a strong and evolving consumer preference within the automotive industry. SUVs have become the vehicle of choice for a wide range of buyers due to their versatility, enhanced driving comfort, and ability to meet the diverse needs of Indian consumers. Compact SUVs, in particular, have gained significant traction, offering the perfect combination of practicality and performance. As we see this segment expand, it's driving healthy competition, promoting innovation, and ultimately offering a wider range of choices to the Indian consumer. This surge signals a maturing market where consumers are increasingly discerning, pushing the industry to elevate its game across design, features, and value proposition,” said Mayank Jain, CEO of New Auto (CarDekho Group).

Moreover, on the luxury brand side, traffic rose by 17% YoY across all model pages.. Although luxury vehicles continue to garner interest, their share of total traffic remains relatively low compared to mass market segments.

Furthermore, as highlighted in CarDekho's previous report, the compact SUV sub-segment remains a key driver of growth in the lead, with total sales nearing 50,000 units in September 2024 alone. Two SUVs from this category crossed the 10,000-unit sales mark, reflecting heightened consumer demand ahead of the festivities. This surge aligns with the trends observed in the latest Festive Trend report, further emphasising the growing demand for SUVs and their subtypes as a preferred choice during this buying period.

Summary

The Indian car market has evolved over the years, and customers' top preference today is SUVs over any other body style. This shift is not only due to our road conditions but also because SUVs exude a more dominant presence and offer a sense of superiority compared to other body styles.Today, we have a range of SUVs, including micro, subcompact, compact, midsize, and full-size models. In fact, compact and subcompact SUVs now account for around 1 lakh unit sales on average every month.

What do you think about SUVs, and which SUV segment is your favourite? Let us know in the comments!

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