The SUV segment has emerged as a clear favorite among Indian consumers, witnessing a steady rise in popularity over the years. Recent data from the Society of Indian Automobile Manufacturers (SIAM) reveals that SUVs accounted for approximately 51 per cent of total passenger vehicle sales in India during the fiscal year 2023-24. This trend is mirrored in the pre-owned car market, where SUVs experienced a notable year-on-year growth of 40 per cent in the same period.

One of the most intriguing developments within the SUV segment is the surge in sales of large utility vehicles, including SUVs and MPVs, which meet the government's criteria for 'real SUVs'. In FY24, sales of these vehicles grew by 27 per cent, outpacing the 25 per cent growth rate observed in the compact SUV segment, as reported by SIAM. In India, a vehicle is classified as an SUV if it exceeds four meters in length, has an engine capacity of 1,500 cc or more, and boasts an unladen ground clearance of 170 mm or more.

While compact SUV models continue to be the primary drivers of growth in the overall passenger vehicle market due to their larger market share, larger UVs are rapidly gaining ground. This shift towards bigger vehicles has proven to be particularly beneficial for Mahindra & Mahindra and Toyota Kirloskar.

Mahindra's market share in the large UV segment (UV2) surged to 45 per cent in FY24, up from 28 per cent in FY21, driven by the success of models like the XUV700 and Scorpio-N. Similarly, Toyota witnessed a significant uptick in sales, with the Innova Crysta and Hycross models propelling growth in the UV3 segment, contributing to a remarkable 77 per cent year-on-year increase in the automaker's sales to 100,293 vehicles in FY24.

According to data from SIAM, sales of large UV models, priced above INR 20 lakh and measuring 4.4 meters with an engine displacement of at least 1.5 liters, experienced a significant surge in FY24. Models like the Mahindra XUV7OO, Tata Safari, Kia Carens, and Toyota Innova Hycross collectively reached 525,000 units in sales, up from 412,000 units in the previous year. This growth rate marks the fastest pace observed since FY21.

Conversely, compact UVs, which constitute the majority of UV sales and include models like the Maruti Suzuki Brezza, Tata Nexon, Punch, Hyundai Venue, and Exter, saw their sales climb to more than 1.25 million units from 1 million units in the same period. This trend underscores a significant shift in consumer preferences towards larger, more feature-rich vehicles in the Indian market.

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