While the share of small cars (sedans and hatchbacks) in the auto industry's total passenger vehicle sales have been decreasing for several years, the share of SUVs has been increasing.
“SUV’s contribution has now gone to 55 per cent in the industry's total sales. In July, its growth took a little hiatus. Why do you think the SUV's share has seen a significant increase in the last few years? In the last one year, almost all the models that have been launched are SUVs...The more launches you do in this segment, their share will obviously go up. At some point, it has to peter out. Whether that point will be 60 or 61 per cent — your guess is as good as mine,” Banerjee said.