UV Market Share to increase to 51-53% soon

According to a recent report, Utility Vehicles (UV) is gaining immense popularity in recent times. This report indicates that the market share of the UVs in the domestic automobile industry is going to exponentially increase in the coming future. A study by CRISIL shows that the share of UVs in the overall domestic passenger vehicle (PV) segment increased to 48% in the 9MFY22 from 15% about two decades ago (FY02), around 3,300 bps rise. The report states: “Consumer preference has shifted towards SUV-type design — aspirational purchase before migrating to a larger SUV, taller driving stance, a more upright and sheer road presence, higher ground clearance, larger tires, and the flexibility and maximization of space, etc.” CRISIL has also predicted that UVs will outperform other segments in the market between FY21 and FY26 and will log a CAGR of 14-18%, while small cars may grow 4-6%. It further informed that the share of the UV market to increase gradually to 51-53% in FY26 from around 39% growth seen in FY21. One of the major reasons for the shift of customers to UVs is the increased number of cars offered by various automobile manufacturers in this segment.