A series of successful compact utility vehicle launches over four quarters has changed the dynamics of the domestic passenger vehicle market.
Utility vehicles, which used to constitute one-fifth of the passenger vehicle market till 2015-16, now contribute over 25 per cent. Cars still constitute the bulk of the passenger vehicle market but their share has come down from over 73 per cent in April-May 2015 to 68 per cent now. Utility vehicles have shown double digit growth in recent months. In April-May 2016, utility vehicle sales grew over 39 per cent to 120,963. Industry observers expect the growth to continue in this segment. The entry of several compact utility vehicles has given a push to sales. Maruti Suzuki, Hyundai, Honda and Mahindra & Mahindra (M&M), have entered this space in the past year.