India’s SUV Boom: CarDekho Group’s New Auto Division Unveils Insights on Changing Consumer Preferences
- The report reveals an 11% year-on-year increase in SUV sales as of July 2024.
- By July 2024, SUVs captured 64% of the traffic share, highlighting strong consumer interest.
- Hatchbacks make up 22% of traffic but have lower sales conversion rates compared to SUVs.
New Delhi: As the SUV trend continues to gain momentum in India, the CarDekho Group’s New Auto division, a leading automotive content and solutions provider, has published a report shedding light on evolving consumer behaviors in the segment. The report emphasizes the growing popularity of SUVs, supported by sales data, search traffic patterns, and lead generation metrics over the past year (July 2023 – July 2024).
SUV sales increased by 11% year-on-year for the period from April to July 2024, making SUVs the only vehicle type to show such positive growth. This rise in sales is mirrored in CarDekho’s traffic data, where SUVs consistently account for the majority of automotive searches, especially during the launch of new models or updates. This pattern underscores the strong link between consumer interest and market performance. According to the report, SUVs have maintained their leading position throughout FY25, with their traffic share climbing to 64% by July 2024. This increase in traffic has directly contributed to higher lead generation, reinforcing the SUV segment’s dominance and appeal among consumers.
While SUVs continue to lead the market, the report also offers a comparison with other vehicle segments. Hatchbacks, while consistently representing 22% of annual traffic, have experienced a decline in sales. This suggests that although hatchbacks remain popular in consumer searches, their conversion into actual sales is less effective compared to SUVs.
“The automotive industry is undergoing a significant shift, with SUVs continuing to dominate the market. This trend is driven by a strong consumer preference for the SUV format, which OEMs have made more accessible through innovations such as the monocoque chassis, typically used in hatchbacks and sedans. Compact SUVs are also increasingly equipped with premium features and improved suspension dynamics, enhancing their appeal. As the price gap between hatchbacks and compact SUVs narrows, the continued growth of SUVs is anticipated,” stated Mayank Jain, CEO of New Auto (CarDekho Group).