A fast-growing segment
The introduction of several products in such a pricey segment is not without reason. After all, SUV models have a long waiting period. Both the Toyota Fortuner and Chevrolet Captiva have waiting periods of as high as five-six months, and the segment has been outperforming the industry over the last few months. The main reasons cited by analysts are introduction of new models and higher disposable incomes.
“SUVs are becoming a very preferred second car, especially in the metros. And companies don’t want to lose out on their image as well as market share by not having a product in this fast-growing segment,” PricewaterhouseCoopers National Head (Automotive Practice) Abdul Majeed said, adding that Hyundai can hope to garner a bigger volume with its re-entry into the SUV category.
This segment comprises SUVs like the Ford Endeavour, GM Captiva, Honda CR-V and Mercedes Benz’s GL-Class & M Class, among others.
According to the Society of Indian Automobile Manufacturers, sales of SUVS of up to seven-seat capacity in the country surged by 62.4 per cent in May to 13,042 units, compared to 8,029 units in the same month last year. The overall passenger vehicle industry, on the other hand, registered a growth rate of 35 per cent at 190,575 units vis-à-vis 141,145 units in May 2009.
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