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Ciaz noses ahead in mid-size sedan race
NEW DELHI: India’s mid-size sedan market has thrown up new challenges for carmakers — to maintain the numero uno position, since the leader in the segment keeps
NEW DELHI: India’s mid-size sedan market has thrown up new challenges for carmakers — to maintain the numero uno position, since the leader in the segment keeps on changing.
A few months ago, Honda City was selling more than 8,000 cars every month, but in May it came down to 3,300. Maruti’s Ciaz sold 5,188 units. A couple of years ago Hyundai Verna was the market leader, but is down today.
“Ciaz is doing well because of low excise duty as it has got the hybrid technology, but it is not a real hybrid,” said Rakesh Srivastava, head of sales and marketing at Hyundai Motors India.
Maruti, however, differs. “With introduction of the smart hybrid technology and new infotainment features, it has pulled ahead as the best product in its class,” sad RS Kalsi, executive director, marketing and sales, Maruti Suzuki.
The picture was different a few years ago. VW’s Vent oh ad overtaken the City, and was the new leader in the segment. Rapid, based on a similar platform, was also catching up.
Then Nissan Sunny overtook the Vento, selling more than 3,000 cars a month. But that plummeted to 171 in April. Vento and Ameo, Volkswagen’s new sedan, together sold 973 units in April. When Honda launched the City with a diesel engine, it became the market leader again.
The mid-size sedan market is less than 10% of India’s car market, and shrinking. Sales of every single model apart from the Ciaz fell from last year.
The segment’s challenge now comes from SUVs and premium hatchbacks. “Customers are evaluating compact SUVs, as price points are similar… The compact sedan segment contracted 16% since January. The premium segment contracted by 35%,” said Srivastava.
