For almost a decade, the entire focus of Indian auto companies remained on the SUV (Sports Utility Vehicle) segment. Higher profits, increasing customer preferences and demand for larger vehicles prompted companies to focus on SUVs and compact SUVs. During this period, hatchback cars, which were once considered the backbone of the Indian car market, were gradually left behind.
This strategy was also successful. Today, SUVs account for more than half of the total passenger vehicles sold in India. But now rising inflation, high prices of cars and decreasing number of first-time car buying customers have forced companies to again look towards the small car market.
Confidence in small cars increased again
Maruti Suzuki Chairman RC Bhargava recently said that the company is working on both small car segment and SUV. According to him, the future of small cars in a country like India will remain strong for a long time because the large population needs affordable and easy personal transportation.
Maruti has long been known for its cars like Maruti Suzuki Alto, Maruti Suzuki WagonR and Maruti Suzuki Swift. In such a situation, the company’s emphasis on this segment again is being considered an important signal for the market.
Tata is making hatchback attractive again
On the other hand, Tata Motors is trying to make hatchback cars the choice of customers again. The company has launched the new generation Tata Tiago and Tata Tiago.ev, which have many such features which were earlier available only in expensive cars.
The new Tiago includes features like 10.25-inch touchscreen infotainment system, wireless smartphone connectivity, wireless charging, dual-screen dashboard and 360-degree camera.
Inflation increased the importance of small cars
In the last few years, the prices of cars have increased continuously due to safety standards, new technology and rising costs. Its biggest impact has been on first-time car buying customers.
Experts believe that hatchback cars are still the first choice of people who want to buy their first car or want to get a second car for the family. Their demand remains strong especially in Tier-2 and Tier-3 cities.
Electric hatchback can also become a game changer
According to experts, as charging infrastructure improves and EV financing becomes easier, the demand for affordable electric hatchback cars may increase rapidly.
new market equation
The dominance of SUVs is not over yet, but auto companies are now realizing that it will be difficult to increase sales only by relying on expensive vehicles. Affordable and feature-loaded hatchback cars can again play an important role in attracting new customers. This is the reason why companies like Maruti and Tata are now considering the small car segment as a major basis for their development.
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