Demand shift pushes small cars to oblivion

ONCE AN UBIQUITOUS product on the roads, commanding a lion's share of the market, out of every 33 cars sold today just one is a mini car, highlighting a massive shift in the buyer pattern.

- SWARAJ BAGGONKAR

Five-seater mini cars like Maruti Alto and Renault Kwid will close the year with just 3% share of the domestic passenger vehicle market, a far cry from the 14% share the segment enjoyed in FY19, according to data shared by the Society of Indian Automobile Manufacturers (SIAM).

The 55-60% jump in prices in the past 8-9 years is the primary reason behind the diminishing interest in such cars, said experts. A Maruti Suzuki Alto (800cc) was priced at ₹2.6 lakh in 2015 whereas the same brand (1000cc, as 800cc is discontinued) is available for a minimum of ₹4 lakh (ex-showroom).

Regulatory changes in areas like emission and safety, general inflation, a 70% increase in petrol prices in the past 9 years, demand for larger and more stylish vehicles with better connectivity options have been the reasons behind the jump in cost of cars.