Business

SUV boom to continue on strong order books

If there’s a SUV product in a passenger car (PV) firm’s portfolio, then the chance of it getting included within the prospects ‘resolution bucket’ is excessive. The SUV section is popping out to be a lifeline for PV makers with a constructive progress outlook this fiscal because the economic system and industries limp again to normalcy amid the pandemic.

The SUV section will proceed to buck the market pattern on the again of sturdy demand. The section has been clocking month-to-month volumes of greater than a lakh items for the previous a number of months (besides lockdown-hit Could 2021) and the pattern is predicted to remain and even get higher.

A number of elements support the expansion of SUVs — rising want for private mobility, shift in consumers’ desire from sedans to SUVs and robust order ebook of car makers will maintain the SUV gross sales momentum intact for a number of months.

Market analysts point out that the present SUV order ebook might last as long as pageant season and past. However, persevering with challenges in sourcing semi-conductor elements might delay the supply of automobiles. If there aren’t any main lockdowns, the order ebook is more likely to be robust.

Pending orders

Firms comparable to Maruti, Hyundai, Kia, Mahindra, Tata, Toyota, Renault and Nissan have robust pending orders for his or her SUVs, notably for his or her not too long ago launched merchandise.

Market chief Maruti Suzuki has greater than 70,000 pending buyer orders for its UVs (together with SUVs and MPVs).

“The UV section is certainly witnessing plenty of buyer curiosity over the previous couple of years. Many OEMs have launched many new choices on this section maintaining it vibrant and interesting. We’re assured that this section will proceed to garner buyer curiosity,” Shashank Srivastava, Senior Government Director, Advertising and marketing and Gross sales, Maruti Suzuki India Ltd, instructed BusinessLine.

Maruti bought practically 230,000 UVs (SUVs & MPVs) in FY21, whereas its whole UV volumes stood at greater than 60,000 items throughout April-June 2021 interval. Vitara Brezza, regardless of being accessible solely in petrol, holds one-fifth of market share within the entry SUV section. Ertiga and XL6 collectively maintain 70 per cent of the MPV section.

“For the reason that emergence of the SUV section, its progress trajectory has turn out to be roughly proof against exterior elements which usually have an effect on another automobile section or for that matter another client product. We don’t anticipate this section to decelerate anytime quickly. SUV-body kind has turn out to be the most well-liked kind in any worth section, be it the sub-4 metre or the mid or massive automobile segments,” stated Suraj Ghosh, Affiliate Director, Powertrain & Compliance Forecasts, South Asia, IHS Markit.

UV gross sales

Throughout Q1 of this fiscal, whole UV gross sales (together with SUVs, MPVs and MUVs) stood at 286,092 items in contrast with 224,224 items in June 2019 interval (June 2020 quarter was hit by the primary wave). Share of SUVs in whole PV gross sales (excluding vans) elevated to 46 per cent now, from 33 per cent in Q1 of FY20.

“Whereas there have been good enquiries and wholesome pending buyer orders after the lifting of lockdown, it’s tough to foretell the surge and its probably influence this fiscal. We consider that the tempo of vaccination has been selecting up and can play a serious position in spurring client sentiments. We anticipate SUV gross sales to be higher within the coming months, supplied that the pandemic doesn’t pose newer challenges,” stated a spokesperson for Toyota Kirloskar Motor.

https://www.thehindubusinessline.com/corporations/suv-boom-to-continue-on-strong-order-books/article35366110.ece

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