Smaller, cheaper vehicles take centre stage amid economic slowdown

As the poor economic scenario takes a toll on individual incomes and the job market, car buyers are now opting for smaller and cheaper cars, away from premium hatchbacks and sedans. 

The result has been a steady decline in per-vehicle revenue for car makers. Revenue break-up of car makers also suggests that buyers are now changing their cars less frequently, compared to the past. Consequently, revenues from spare parts and vehicle servicing are growing at a faster clip than revenue from vehicle sales in the domestic market.

Volume car makers, including Maruti Suzuki, Hyundai Motors and Honda Cars, have seen