Smaller, cheaper vehicles take centre stage amid economic slowdown

Revenue break-up of car makers also suggests that buyers are now changing their cars less frequently, compared to the past

car, auto, automobile, sales
Premium

In FY20, domestic sales of Maruti’s entry level and compact cars were down 17 per cent year-on-year (YoY) against a 45.3 per cent contraction in sales of sedans

Krishna Kant Mumbai
As the poor economic scenario takes a toll on individual incomes and the job market, car buyers are now opting for smaller and cheaper cars, away from premium hatchbacks and sedans. 

The result has been a steady decline in per-vehicle revenue for car makers. Revenue break-up of car makers also suggests that buyers are now changing their cars less frequently, compared to the past. Consequently, revenues from spare parts and vehicle servicing are growing at a faster clip than revenue from vehicle sales in the domestic market.

Volume car makers, including Maruti Suzuki, Hyundai Motors and Honda Cars, have seen

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Oct 05 2020 | 6:10 AM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on business-standard.com are available only to BS Premium subscribers.

Register to read more on Business-Standard.com