- Compact SUVs (sub-4m) remained the most popular SUV sub-segment, posting 37% YoY growth in traffic
- Executive SUVs showed the highest growth within the SUV category, registering a 47% YoY increase, with traffic contribution rising from 15% to 19%, whereas the midsize SUV sub-segment saw a solid 31% YoY growth
- Luxury Brand OEMs experienced 17% YoY growth across all model pages
- The mass hatchback segment grew by 28% YoY, driven by a 31% rise in traffic for premium hatchbacks.
Delhi 29th, October, 2024: Analyzing the heightened consumer activity during the festive season, CarDekho Group's New Auto segment, a leading platform for automotive content and solutions, has released its latest Festive Trend report. The report captures the pre-festive season traffic trends across various sub-segments of the 4W passenger vehicle industry, comparing traffic volumes between April and September of last year to the same period this year. The data underscores significant changes in consumer demand and preferences, with SUVs continuing their dominant streak as the vehicle of choice across demographics. This surge in demand is attributed to the availability of 58 SUV models currently in the market, with further launches expected in FY25. Additionally, the segment offers a broad range of fuel and engine type combinations, catering to diverse consumer needs and providing tailored options to suit varying preferences.
The mass SUV segment led the growth in the automotive market, registering a strong 43% year-over-year (YoY) increase in traffic. Its contribution to overall traffic on the platform rose from 50% to 63%, making it the most dominant body type. While all SUV sub-segments displayed significant growth, the compact SUVs (Sub-4m) sub-segment led with 37% YoY growth, increasing their traffic contribution from 32% to 38%. Notably, the average selling price of hatchback models has been rising, further narrowing the price gap between hatchbacks and compact SUVs, which is contributing to the increasing consumer shift toward SUVs. Additionally, executive SUVs saw the highest growth within the SUV category, showing a 47% YoY increase, with its share rising from 15% to 19%. The midsize SUV sub-segment also performed well, with a 31% YoY increase.
In the Mass hatchback segment, traffic grew by 28% YoY, driven largely by premium hatchbacks, which make up 86% of the total traffic in this category. Premium hatchbacks experienced a 31% YoY growth, while mini hatchbacks grew by 20%. However, micro hatchbacks saw a 22% decline in traffic, indicating a shift in consumer interest away from smaller, ultra-compact vehicles.
Sedans showed the lowest growth among all body types, with an 18% YoY increase, maintaining a consistent 15% share of overall traffic. Despite this, the premium sedan segment saw a significant 65% YoY growth, even though it is driven by just one model. However, this sub-segment’s contribution remains at only 1% of total site traffic.
“The continued growth of the SUV segment reflects a strong and evolving consumer preference within the automotive industry. SUVs have become the vehicle of choice for a wide range of buyers due to their versatility, enhanced driving comfort, and ability to meet the diverse needs of Indian consumers. Compact SUVs, in particular, have gained significant traction, offering the perfect combination of practicality and performance. As we see this segment expand, it's driving healthy competition, promoting innovation, and ultimately offering a wider range of choices to the Indian consumer. This surge signals a maturing market where consumers are increasingly discerning, pushing the industry to elevate its game across design, features, and value proposition,” said Mayank Jain, CEO of New Auto (CarDekho Group).
Moreover, on the luxury brand side, traffic rose by 17% YoY across all model pages.. Although luxury vehicles continue to garner interest, their share of total traffic remains relatively low compared to mass market segments.
Furthermore, as highlighted in CarDekho's previous report, the compact SUV sub-segment remains a key driver of growth in the lead, with total sales nearing 50,000 units in September 2024 alone. Two SUVs from this category crossed the 10,000-unit sales mark, reflecting heightened consumer demand ahead of the festivities. This surge aligns with the trends observed in the latest Festive Trend report, further emphasizing the growing demand for SUVs and their subtypes as a preferred choice during this buying period.
About CarDekho Group
Founded in 2008, CarDekho Group is one of the leading Autotech & finance solution platforms with nearly 60mn MU. A $1.2 billion valuation Unicorn, CarDekho Group operates companies in Insurtech (InsuranceDekho, India’s #1 B2B2C), Fintech (rupyy, one of the leading lending Fintech platforms), Shared mobility space (Revv) & also operates India’s leading automobile content portals such as CarDekho.com, BikeDekho, ZigWheels, Powerdrift etc. Being environmentally conscious and a firm believer of sustainable development, the CarDekho group has pledged to become carbon neutral by 2050 under the United Nations framework and has also adopted 5 UNSDG goals. CarDekho Group is backed by marquee investors like Peak XV(Sequoia), Hillhouse Capital, CapitalG, Ratan Tata Trust, Leapfrog (ESG-focused investment fund), HDFC Bank, ICICI Bank, and Axis Bank, amongst others.