SUVs remained volume spinners in June for firms such as Audi

Despite falling sales in the automobile sector , domestic manufacturers are upbeat about the growth of the sport utility vehicles (SUVs) segment, which has reported a double-digit rise with fresh demand emerging from both urban and rural markets.

According to figures of the Society of Indian Automobile Manufacturers (Siam), sales of SUVs increased by 16.4 per cent in the last fiscal. The growth continued to remain bullish in the first quarter of this fiscal year with most companies posting high double-digit growth.

"Recently launched models such as Maruti Suzuki Ertiga, Mahindra and Mahindra XUV500 and face-lifted versions of Toyota Innova have done well and received good responses from customers," Kinjal Shah, analyst with the rating agency Internet Content Rating Agency (Icra), said.

Even in the luxury car segment, SUVs remained volume spinners in June for companies such as Audi, which reported an increase of 76 per cent compared to the same month last year.

"We had received 500 bookings for Audi Q3 within five days of its launch, of which 200 vehicles have already been delivered. Seeing such a tremendous response, we have opened the next round of booking for 500 units of Audi Q3. Therefore, we expect the same response from our customers," said Michael Perschke, head, Audi India. This why most auto manufacturers are betting high on the SUVs with more than half-a-dozen launches lined up this year. French carmaker Renault is also coming up with its much-awaited SUV Duster, which is expected to be a game changer. The company had already showcased Duster at the auto expo in January, and sources say that the car will be in the Rs 7.5 lakh-Rs 12 lakh price range. The car will be available in both diesel as well as petrol. The model is very popular in the European market.

Besides, Ford India Pvt Ltd is banking on its soon-to-be-launched EcoSport. "In fact, competition in the SUV segment is expected to intensify even further in view of several models slated to be launched in the current fiscal, including Chevrolet Enjoy, Nissan Evalia, Ashok Leyland Stile, and Mahindra Mini Xylo," Icra's Shah pointed out.

Courtesy: Mail Today