SUVs may rule but premium hatches, small cars drive volumes in India

While almost all cars that fell into that category cost less than larger sedans or even mid-size SUVs, the underlying truism led to two realities

Today the sports utility vehicle or SUVs may be the flavour of the decade, but rewind to circa 2007 and the Indian auto sector was driven by one core product: the small car. Every auto manufacturer, from Tata Motors and Maruti Suzuki to Volkswagen and Škoda as well as BMW and General Motors, had a version ready for roll-out.

A cursory look at industry trade numbers then and even now would reveal that the mainstay and driver of volumes for car-makers has been the hatchback, the compact sedan and other derivatives that qualify under India’s excise and tax rules that