Sales growth of entry-level cars or hatchbacks like WagonR and Alto have seen a decline during the past few years due to changing consumer preference.
Maruti Suzuki Chairman R C Bhargava had on October 28 said that he does not expect hatchback unit sales to grow in the fourth quarter (Q4FY23) or in the next fiscal year.
“This means that everywhere — whether urban or rural — the ability of people to buy hatchbacks has eroded,” he had mentioned. The sales have dropped from 49.4 per cent in FY17 to 35.1 per cent in the first half of FY23 as car companies have turned their attention to the SUV segment, which is seeing the highest growth.
Bhargava had said that people’s preference shifted from hatchbacks to SUVs much before the current inflationary pressures, even though the prevailing situation will further affect the hatchback segment.