Sedans – The Bulging DemandNews | April 19, 2012 at 2:57 am
Not long ago small cars dominated the Indian car industry, but there is a dramatic change in the mindset of people in India and the upwardly mobile youth whose aspiration for a premium car has pushed the sale of bigger vehicles by one fourth in last one year.
SEDANS- commonly referred as sedans – has a great growing demand in models like Hyundai Verna, Nissan Sunny, Skoda Rapid, Maruti sx4 , Maruti Dzire, Volkswagon Ventom and Toyota Etios now form a major chunk of Indian car market and reason for car makers to smile and in stunning contrast the small popular cars like Maruti Alto, Wagon R, Hyundai Santro and Spark the demand has declined.
Indian customers are now willing to spend on bigger cars and derive better value on the higher ticket price.
young customers with high disposal income and also large number of small car owners who want to upgrade form the major chunk of buyers for sedans and with demands increasing new launches have triggered a price war, leading to fall in price. Another important factor is that market shift towards diesel has played a major role in demand for sedans.
Affordability of customers is and there are better and bigger options for sedans, and with the fundamentals of economy still intact and strong this trend will continue.
The changing trends in new car purchases have left manufacturers grappling to meet the growing demand.
Top seller like Hyundai Verna is running up to 7-8months of waiting delivery and so is sunny from Nissan.
The prolonged strike of Maruti affected the availability of compact cars and allowed customers to shift their choice to bigger sedan segment. Diesel engines option and economy on fuel moved a large chunk of customers to jump to premium cars- Sedans!