Indian Automobile sector has been through various different stages along its development in the to the current phase. Entry level vehicles have bene some of the biggest drivers of growth for the whole industry. But recent trend have showcased a worrying change, beyond these worrying changes the future of the automotive industry raises further questions about how the industry is pacing towards new perpetual changes.
Data
As per a report that was recently published by Auto Car Professional hatchbacks constituted for about 46% of the passengers car market. But with times the numbers have dropped considerably, in 2023 the number dropped to 30%. As of now in 2024 SUV’s dominate 48.7% of the market. Suv’s seem to be the go to choice for Indians who seek a new vehicle.
Changing Consumer Preferences
Over time the preferences of consumers have changed, the usual hatchbacks that marked the proverbial shift of a user from two wheelers to Cars has been lost. Even first time buyers want SUV’s or rather pretend SUV’s that are FWD hatchbacks with boisterous panels and looks. The ease of accessing loans and commit to EMI’s have further added to the overall change. Advanced tech, better road presence, new features along with better safety features have seemingly aligned with the aspirations of the middle class whose gross income have increased over the years as well.
Reasons Behind The lack of Sales Figure of Entry Level Hatchbacks
The simple Hatchback that brought two wheeler users to cars held great aspirational value. The prverbial shift meant a lot, and the simple hatchback held a lot of vanity in those years. But with the progress of the market and new launches the said novelty of the car factor has worn off. What holds vanity today is the presence of the vehicle the appearance the features. Any buyer willing to spend north of 10 lakh RS would not consider the hatchback to be a valid choice today. The fact has also been helped by the easy accessibility of SUV’s or pretend SUV’S on different price points.
So the overall change has been the resultant of changing preferences along with better finances and support from easy credits. Would the reign of the Hatchback ever come back
Since preferences change the users would soon be opting for much smaller vehicles such as the MG Comet. or smart vehicles that have become the go to choice of many users in countries like United States due to parking concerns.
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