India, Sports Utility Vehicle (SUV) market is one of the most quickly growing
markets these days in the automobile sector due to changing customer
perceptions towards purchasing the four wheelers. The shift has been clearly
evident to the smaller Indian cars to SUV cars in the market. The adrenaline
rush of the Indian youth who are playing a major role in switch can be stamped
by the factors which are influencing an average car consumer
of the person plays a major role in influencing his/her decision in buying
SUVs. For e.g. those who enjoy travelling are more likely to buy SUVs or
sedans. Those who want to commute to office on a daily basis would love a small
car or sedan. People who have freedom to travel anywhere with unlimited budget
choose to buy SUVs or sports cars or luxury cars. Some people show concern over
environmental pollution. They do not prefer SUVs as they occupy space causing
traffic jams, burn more fuel and they obscure view of small car drivers on the
road. They are most likely to buy small cars (hatchbacks).
The personality factors influence the car
buying behavior. A study conducted over four types of personalities supports
the claim. Adventure seekers and aggressive persons would love to drives SUVs.
Calm persons and loners prefer minivans and small cars. Some believe that the
SUVs project them as more confident than peers. In such cases there is a chance
that they opt for SUVs.
study on lifestyle factors categorizes people into four types- status seekers,
workaholic, family/community oriented and frustrated. Status seekers intend to show
off to the peers or the society. They show themselves to be different and
unique. They believe SUVs and luxury cars are status symbols and they are more
likely to drive SUVs. Some status seekers, who already have a car, buy SUVs as
their second car to project a better image among peers. On the other hand
frustrated people are less likely to drive SUVs and prefer small cars. Family
oriented people rarely consider SUVs, though their main requirement is a
spacious car due to budget constraints and they might end up buying a minivan.
most important factors that define car buying behavior are based on
have sturdy design suitable for off-road abilities. They can do better even
around bad roads, hilly terrains and snow. Generally, SUVs are equipped with
engines of higher power and torque. Higher power increases the performance of
the vehicle. Customers feel fun to drive SUVs and they drive it for better
experience. They come with better safety features. Sturdy design and tall
seating make occupants feel safer while driving.
SUVs are more spacious compared to any other
form of car. Both in seating and luggage space, they hold more luggage and have
better carrying capacity. SUVs come with different seat configurations
providing options for the customers.
the contrary, due to heavy design and bigger engine capacities, SUVs are less
fuel efficient compared to normal sedan cars. They are also bulky and need more
parking space. Sometimes they might result in traffic jams due to their bigger
size. Generally, SUVs are expensive because they are big and have heavier
design with more capabilities. Price is one of the major factors in a country
like India for purchasing an SUV. Sometimes, government policies also affect
the price. For e.g. in India, SUVs with more than four meters in length or
engine capacity of more than 1500 cc or with ground clearance of 170mm attract
an extra excise duty of 30%. This increases the on road price of the SUV
shifting the burden finally to the customers.
focus is shifting towards cars with Automatic Transmission. Now, ever
lengthening commutes are pushing the country’s famously price-conscious
consumers to upgrade to cars that are easier to drive. Most notably, more
consumers are buying pricier models that sport automatic gears and moving away
from the manual stick-shifts that have long held sway over Indian roads. With
the average driving time going up to 2 hours a day, a driver looks forward to ease
of driving, especially in the traffic conditions faced in India. This is one of
the most important factors pushing the demand of an automatic car.
with the above given reasons and the factors have drawn the shift of consumers,
these insights clearly suggest the change in Indian car industry with the entry
of compact SUV entry into market like Vitara Brezza, Hyundai Creta ,Tata Tigor,
and bigger SUV players like Mahindra, Tata, Toyota .