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S Ronendra Singh
New Delhi, April 16
The compact car and mid-size sedan segments in the passenger vehicles (PVs) category declined not only in the domestic market in the fiscal year 2024-25 (FY25) but also in exports compared to FY24, as customers are choosing utility vehicles over these two.
During the year, the total domestic wholesales (dispatches to dealers) of the compact segment (Maruti Baleno, Swift and Dzire; Hyundai Aura and i20; Tata Tiago and Altroz; and Honda Amaze) declined by 11.48 per cent year-on-year (YoY) to 11,46,070 units, compared with 12,94,798 units in FY24.
Similarly, exports of these segments declined by 11.53 per cent YoY to 2,09,260 units in FY25, compared with 2,36,547 units in FY24, the latest data shared by Society of Indian Automobile Manufacturers (SIAM) has said.
In the mid-size sedan category, including Maruti Ciaz, Honda City and Hyundai Verna, the total domestic sales declined by 28.12 per cent YoY to 56,328 units in FY25, compared with 78,373 units in FY24.
In terms of exports, although the total numbers have declined YoY, they are much higher than what the manufacturers have sold domestically. The total exports reached 1,53,510 units in FY25, declining by 1.53 per cent YoY as compared with 1,57,510 units in FY24.
Once the market leaders in mid-size sedan like the Honda City, Maruti Ciaz and Hyundai Verna, have all seen sales dwindle over the last couple of years.
“Sedans are declining and the hatchbacks are not growing anymore, especially the A segment (mini cars). And, this a global phenomena where sports utility vehicles (SUVs) are more bought,” said a Delhi-based analyst.
For instance, Honda City sales in the domestic market in FY25 declined to 10,901 units compared with 16,925 units in FY24. In exports also, it has declined to 14,099 units last year, compared with 26,206 units in FY24.
Similarly, sales of Maruti Ciaz declined to 8,402 units in FY25 in the domestic market against 10,337 units in FY24. Exports also, it has declined to 9,977 units last year, against 10,973 units in FY25.
Due to falling numbers of the sedan, Maruti Suzuki India has even decided to discontinue the Ciaz and has said that in the future, it may bring back the Ciaz in some other form or platform.
Hyundai Verna sales also declined to 15,593 units in the domestic market in FY25 against 30,017 units in FY24, and in exports it has also declined to 52,615 units as compared with 55,177 units in FY24.
That is why domestic SUV sales have also grown by 11 per cent YoY to 27,97,229 units in FY25, compared with 25,20,691 units in the April-March period of 2023-24. Exports have also grown by 54.3 per cent YoY to 3,62,160 units in FY25, compared with 2,34,720 units in FY24.
According to SIAM, export demand in key markets of interest, such as Africa, Latin America, and neighbouring countries, is likely to continue as ‘Made in India’ vehicles gain traction.
Overall, the automobile industry will closely monitor macroeconomic factors and global geopolitics, which will determine the key demand conditions and supply chain dynamics going forward, it added.
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