Sedans and hatchbacks have both lost market share to SUVs, which now account for more than 50% share of the 4 million-odd-unit PV market in the country.
Sedans, a segment that has been witnessing a decline in sales over the past few years, is in for a fresh fillip, with market leader Maruti Suzuki India Limited introducing a new version of its popular brand Dzire, which enjoys a 61 per cent share in entry-level sedans.
In the coming months, Maruti's Japanese peer Honda is set to launch a facelifted Amaze sedan. The segment, thus, is set to see more action.
Sedans had a 17 to 18 per cent share of the market in 2010, which went up to 23 to 24 per cent in 2015.
Since then, the segment has seen a continuous decline -- falling to 11 per cent in 2021-2022, and currently it accounts for a meagre 8 per cent of the passenger vehicle (PV) market.
Sedans and hatchbacks have both lost market share to SUVs, which have grown consistently, and now account for more than 50 per cent share of the 4 million-odd-unit PV market in the country.
"Sixteen years ago, we introduced a sedan in a relatively new segment for Indian customers. Within five months of its launch, this sedan became a part of over one lakh families in India," Maruti MD and CEO Hisashi Takeuchi said.
"The resounding success and appreciation for this 'Made in India' car led to the creation of the entry sedan segment," Takeuchi added.
Since its launch, the Dzire has sold 2.7 million units, and has featured in the top 10 highest-selling vehicles in the country.
It has been the No. 1 in the entry-level sedan category for the last 16 years. Maruti is thus trying to encash on the brand strength of Dzire.
"Dzire alone sells more than all other sedans put together in the market," Takeuchi said.
The fourth-generation Dzire, however, is a completely new car, said Partho Banerjee, senior executive officer, marketing and sales, MSIL.
"The Dzire brand is a strong brand, but this car is as good as a new product with high fuel efficiency, plush interiors, and more space," Banerjee told Business Standard.
The third-generation Tour (Dzire) will continue to sell in the taxi segment, where it is popular, while the new fourth-generation Dzire will be reserved only for the personal segment, Banerjee added.
The new Dzire will also be exported like its predecessor to regions like Latin and Central America, Africa, Southeast Asia, and West Asia.
Commenting on the current sales trend for the Dzire, Banerjee said that the car sold 165,000 units last year (FY24) and this year till October, it has sold 75,000 units as the company was calibrating its production ahead of the new Dzire launch.
Feature Presentation: Ashish Narsale/Rediff.com
