CarDekho Group’s New Auto segment, a leading platform for automotive content and solutions, has published its latest Festive Trend report, analyzing increased consumer activity during the festive season. This report examines traffic trends in various sub-segments of the 4W passenger vehicle market, comparing traffic volumes from April to September of last year with the same period this year. The findings reveal significant shifts in consumer demand and preferences, highlighting SUVs as the preferred vehicle across demographics. This rise in demand is driven by the availability of 58 SUV models currently on the market, with more launches anticipated in FY25. The segment also offers a wide range of fuel and engine combinations, catering to diverse consumer needs and preferences.
The mass SUV segment led the growth in the automotive market, registering a strong 43% year-over-year (YoY) increase in traffic. Its contribution to overall traffic on the platform rose from 50% to 63%, making it the most dominant body type. While all SUV sub-segments displayed significant growth, the compact SUVs (Sub-4m) sub-segment led with 37% YoY growth, increasing their traffic contribution from 32% to 38%. Notably, the average selling price of hatchback models has been rising, further narrowing the price gap between hatchbacks and compact SUVs, which is contributing to the increasing consumer shift toward SUVs. Additionally, executive SUVs saw the highest growth within the SUV category, showing a 47% YoY increase, with its share rising from 15% to 19%. The midsize SUV sub-segment also performed well, with a 31% YoY increase.
In the Mass hatchback segment, traffic grew by 28% YoY, driven largely by premium hatchbacks, which make up 86% of the total traffic in this category. Premium hatchbacks experienced a 31% YoY growth, while mini hatchbacks grew by 20%. However, micro hatchbacks saw a 22% decline in traffic, indicating a shift in consumer interest away from smaller, ultra-compact vehicles.
Sedans showed the lowest growth among all body types, with an 18% YoY increase, maintaining a consistent 15% share of overall traffic. Despite this, the premium sedan segment saw a significant 65% YoY growth, even though it is driven by just one model. However, this sub-segment’s contribution remains at only 1% of total site traffic.
“The continued growth of the SUV segment reflects a strong and evolving consumer preference within the automotive industry. SUVs have become the vehicle of choice for a wide range of buyers due to their versatility, enhanced driving comfort, and ability to meet the diverse needs of Indian consumers. Compact SUVs, in particular, have gained significant traction, offering the perfect combination of practicality and performance. As we see this segment expand, it’s driving healthy competition, promoting innovation, and ultimately offering a wider range of choices to the Indian consumer. This surge signals a maturing market where consumers are increasingly discerning, pushing the industry to elevate its game across design, features, and value proposition,” said Mayank Jain, CEO of New Auto (CarDekho Group).
Moreover, on the luxury brand side, traffic rose by 17% YoY across all model pages.. Although luxury vehicles continue to garner interest, their share of total traffic remains relatively low compared to mass market segments.
Furthermore, as highlighted in CarDekho’s previous report, the compact SUV sub-segment remains a key driver of growth in the lead, with total sales nearing 50,000 units in September 2024 alone. Two SUVs from this category crossed the 10,000-unit sales mark, reflecting heightened consumer demand ahead of the festivities. This surge aligns with the trends observed in the latest Festive Trend report, further emphasizing the growing demand for SUVs and their subtypes as a preferred choice during this buying period.
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