According to its Draft Red Herring Prospectus (DRHP), SUV share in India’s car market is set to jump to 60% by the financial year 2028-29 from around 50% now.

Business Standard also cited a CRISIL report which says the segment is expected to grow at a compound annual growth rate (CAGR) of 7% to 9% from 2023-24 to 2028-2029.

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In contrast, the Indian market share of hatchbacks dipped from 47% to 28% between the financial year 2018-19 and 2023-24, while that of sedans declined from 19% to 9% during the same period, according to the article.

“With our premiumisation strategy, we expect the SUVs to continue to form a substantial portion of our passenger vehicle portfolio and sales,” the company said in its DRHP. “Consequently, our future success will, to a large extent, depend on continued demand for and market acceptance of our SUVs.”

However, a change in government regulations, including those related to taxation, consumer preferences, technological change, or other factors that could reduce demand for SUVs or any disruption in the manufacturing of SUVs, may impact this, the DRHP said.

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HMIL’s current SUV offerings include the Creta, Venue, Alcazar and Tucson. the Grand i10 Nios, Aura, and i20 constitute the compact car segment.

“Modern consumers in India are preferring mid-end or top-end versions of the vehicles, moving away from the traditional fuel-efficient budget-friendly small cars towards higher priced feature-loaded larger cars which offer much more space, taller ride height, seamless connectivity, and improved performance,” the company said.

As many as 30 SUVs have been launched in the Indian market in the last five years, versus four hatchbacks and three sedans, according to the Business Standard article.

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