In an indication of a strong come-back in utility vehicle (UV) space by Tata Motors, its compact SUV Nexon secured an entry into Top Five UVs club in August.

Tata Nexon, the only compact SUV in the country that has secured 4-star rating for passenger safety, sold 4,499 units in August. Maruti’s Vitara Brezza remained the largest selling UV in the country with sales of 13,271 units in August, followed by Hyundai Creta (10,394 units), Toyota Innova (6,680 units) and Mahindra Bolero (6,030 units), according to the data provided by the Society of Indian Automobile Manufacturers (SIAM).

“Since launch, the Nexon has received a very good response and today is among the top 5 selling compact SUVs,” Mayank Pareek, President – Passenger Vehicle Business Unit, Tata Motors, said recently.

Nexon has helped Tata regain market share in the UV space. During April-August 2018 period, Tata Motors’ UV sales stood at 30,482 units as against just 9,545 units in the same period a year ago. With growing volumes of Nexon, Tata’s market share has grown to about eight per cent from about 3 per cent.

Though UV sales growth has moderated to high single digit during this fiscal from a strong double digit last year, the segment is expected to maintain a decent growth due to new launches and shift in buyer preferences.

The UV segment has been an outperformer in the domestic PV industry over last five years. This growth was supported by new model launches. Also, companies priced the products competitively by availing sub-4 metre excise duty benefits leading to the entry of more players.

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