Nearly a dozen new UV models set to go on sale ahead of festive season

Utility vehicles — multi-purpose and sports utility — will come in big numbers in the run-up to the festive season.

Close to a dozen new models, expected to be priced between Rs 550,000 and more than Rs 25 lakh, are set to hit the road — the highest in two years.

This excludes refurbished existing models, also expected to be launched.

Unlike this year, when most new launches are scheduled for the festive season, the launches in FY21 — eight in all — were spread over the year.

There were seven launches in FY22, while the figure was five-six each for FY18, FY19, and FY20.

The peak festive season, which starts from Navratri and ends with Diwali, is critical for auto companies and accounts for a fifth of their annual sales.

Sales in the first two months this financial year indicate the body style’s share is inching up close to being half the passenger vehicle (PV) market.

Automakers driving in new sets of wheels in the run-up to the festive season is not new, but what makes this season unique is the number of models in the mass market segment and the launches being confined to just one body style. Hatchbacks and sedans will be conspicuous by their absence.

First off the block will be Maruti Suzuki’s new-generation Brezza. On Monday, the company shared the first look and commenced bookings for the new model, which will be put on the market on June 30.

A high-seating position, better ground clearance, the ease of getting in and getting out, and improving road infrastructure have been fuelling utility vehicle (UV) sales in the world’s fifth-largest auto market.

The share of UVs in India jumped to 48 per cent in the PV market in the first two months this financial year, overtaking the 44 per cent share of passenger cars. This is a sharp departure from 2018-19, when UVs accounted for 30 per cent and passenger cars 64.5 per cent, according to the Society of Indian Automobile Manufacturers (Siam).

“We expect the segment size (utility vehicles) to expand 25 per cent to 1.5 million units in calendar year 2022 from 1.2 million units in 2021,” said Puneet Gupta, director, S&P Global Mobility, Automotive Sales Forecast India & Asean.

For FY23, sales are expected to expand to 1.6 million units from 976,000 in 2018-19, according to industry estimates.

The share of hatchbacks is expected to crimp to 1.2 million units from 1.5 million in the same period.

Nikunj Sanghi, chief executive officer, JS Fourwheel, said: “Sports utility vehicles (SUVs) will be the flavour of the festive season and the momentum is expected to continue. However, the overall inflationary trend, which has jacked up prices, can be a deterrent.”

“Food inflation has impacted household budgets. While this has been visible in the small car market for some time now, it will start playing out in the SUV market when supply and demand even out and the semiconductor shortage is behind us,” said Sanghi.

The Brezza will be followed by the launch of the Toyota Hyryder, a mid-size SUV, the rival to the Hyundai Creta and Seltos, on July 1.

Toyota will launch the Urban Cruiser, the Brezza in another make, and Maruti will launch the Hyryder under its own unnamed badge as part of the global alliance between the parents of the two companies.

Maruti, which has been caught on the back foot amid changing buyer preferences regarding SUVs, saw its market share slip to 42.75 per cent at the end of FY22 from 48.71 per cent in the corresponding period a year earlier, according to the Federation of Automobile Dealers Association (FADA).

Amid heightened competition from rivals, despite the new launches, maintaining profitability may be tough for Maruti, wrote Chirag Shah, analyst from Edelweiss Securities.

On June 27, Mahindra’s new Scorpio will break cover as a D-segment SUV. Mahindra is also expected to launch the new-generation TUV3OO under a different brand on August 15.

French carmaker Citroen will debut in the mass market with its C3 — the micro SUV that will rival the Tata Punch and Suzuki IGNIS.