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View Poll Results: Is the hatchback segment dying?
Yes 144 45.28%
No 114 35.85%
Make a comeback (if 4 meter rule is withdrawn) 66 20.75%
Can't say 14 4.40%
Multiple Choice Poll. Voters: 318. You may not vote on this poll

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Old 21st February 2024, 21:04   #31
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Re: Hatchback and SUV sales analysis | Is the hatchback segment dying?

I thought hatchbacks were on decline but recent sales of Baleno says otherwise. I20 and Altroz are on decline but Baleno facelift is still smashing it. Although I don't see them much in city like Hyderabad but they certainly are on demand in other cities probably.
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Old 21st February 2024, 23:29   #32
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Re: Hatchback and SUV sales analysis | Is the hatchback segment dying?

It's better to generalize that low ground clearance, be it hatchback or sedans, are losing market share.
Indian roads have been plagued with pot holes and unscientific breakers from times immemorial, and with Ford Ecosport came the solution for mass market by raising the hatch back and calling it compact SUV. Unfortunately, Ford couldn't survive in India but their solution led fortunes for Hyundai and later Maruti and others.
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Old 22nd February 2024, 01:15   #33
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Re: Hatchback and SUV sales analysis | Is the hatchback segment dying?

Small hatchbacks will always have a market it may grow small but will always make its presence felt, the premium hatchback category is the one which is struggling and that’s mainly due to the pricing and the some not getting enough updates like the outdated Jazz and the pricey i20, the Baleno still hold its own and that is mainly due to the pricing which is not much higher than what it was when it was launched years before although it had a diesel engine then but now it has more features, companies like VW/Skoda don’t offer budget hatchbacks like the Up in India and they know they cannot sell a Polo for 15 lacs so they bought in the Taigun/Kushaq crossovers a.k.a SUV’s in our market but these are essentially a Polo underneath only a bit raised.
The real segment that died was the D segment sedans, they are the ones who took the brunt of the SUV craze and had to give way.
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Old 22nd February 2024, 06:15   #34
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Re: Hatchback and SUV sales analysis | Is the hatchback segment dying?

Segment is still active and vibrant, just the packaging is changed. Nexon, Brezza, Venue, Sonet are actually the new age hatchbacks with higher ground clearance and boxy looks and are now called compact SUVs. In-fact I would say that the 4.2/4 meter hatchback is also active (which at one time S-Cross was trying to create) with Creta/ Seltos / Aster / Elevate/ Taigun / Kushaq

Only SUVs in the sub 4.5M segment is Jimny, Thar, Compass, Duster rest others are repackaged Hatchbacks

Yes, with the higher disposable income and maturing used car ecosystem, 3.5/3.7 meter segment (entry level) is shrinking

Last edited by Asoon : 22nd February 2024 at 06:17.
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Old 22nd February 2024, 06:34   #35
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Re: Hatchback and SUV sales analysis | Is the hatchback segment dying?

I feel there are no upgrade options to a hatchback customer than a cross over (ours is not a market where i30, Golf are available). For more features, power and boot space it's the crossover segment which is waiting in the wings for most (if not all) customers.

Some crossovers present the perfect height for ingress/egress (which is undeniable), a perception of taking on bad roads (to some extent true due to GC) and a misguided sense of adventure (FWD and 'drive modes!)
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Old 22nd February 2024, 08:13   #36
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Re: Hatchback and SUV sales analysis | Is the hatchback segment dying?

I do not think that the hatchback segment is going to die anytime soon in India considering our space constraints within the cities.

What's to be considered is how the cars are being marketed in India. Can we actually call a XUV300 / Exeter / Venue / Seltos and their likes SUV? Gosh, today, even the S-Presso is a SUV in India!

Its just that the market has matured and the consumer base is slowly shifting from basic small hatchbacks to those have a more bigger stance and offering features that mid-range sedans would provide a few years back.
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Old 22nd February 2024, 09:06   #37
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Re: Hatchback and SUV sales analysis | Is the hatchback segment dying?

As many have mentioned already it is the new age CSUVs like Tata Punch, Hyundai Exter, Maruti Fronx and others taking the bulk of of the share of the so called SUV segment.

I was in the market to buy a premium hatchback and went to the major players like Tata, Hyundai, Maruti and even Citroen. The sad thing is that the there is no real hatchback under 5 lacs available in the market. As a potential buyer I will have to shell atleast 8 lacs on road here in Chandigarh for a mid model hatch like Swift, Tiago, Grand i10. I am better off spending some more and getting an SUVish hatchback which will justify the amount I have spent.

I test rode all entry CSUVs and came to the conclusion that a Baleno, Altroz, i20 is still better in terms of handling and feel good factor than a lets say Punch, Exter etc.

All they have done is taken the base hatch, raised the bonnet and added a big front bumper and raised the ground clearance. But all this translates to sheet metal cost, suspension changes etc. To compensate the interiors and other areas have been compromised.

But we live in a place where the snob value of the car is more important than the overall appeal. In terms of capability, a good premium hatchback would be better for the city unless there are poor roads.

Last edited by Axe77 : 22nd February 2024 at 09:46. Reason: Clean up edits. (Typos and caps where needed). Please proof read content before posting. Thank you.
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Old 22nd February 2024, 10:03   #38
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Re: Hatchback and SUV sales analysis | Is the hatchback segment dying?

Voted No!

Not including CSUVs, the entire hatchback segment focusing on the mass market can be subdivided into 4 segments; each demonstrating it's own long-term trend:-

1) Entry-level - Alto, S-Presso, Kwid
2) Mid-level - Wagon R, Celerio, Tiago
3) Upper-mid - Swift, Grand i10, Punch, Exter -
4) Premium - Baleno, i20, Altroz

The Entry level segment has been in secular decline. Several nameplates have exited the market (Hyundai Eon, Datsun RediGo, etc.) but the leader (Alto) still sells a lot less than it did in the yesteryears. Kwid sales have declined massively (90%) over the last 7-8 years and in my view, is in line to be discontinued.

The Mid-level segment is rock-steady. WagonR routinely figures in the list of top-selling vehicles and Tiago is also doing very well as it is offered in multiple fuel options (Petrol, CNG, Electric).

The Upper-mid segment is doing very well. Swift sales have not been impacted despite new cars being launched at similar price points (Exter, Punch) which are themselves selling like hotcakes.

The Premium hatchback segment is a mixed bag with the Baleno-Glanza twins doing well and Altroz benefiting from being made available in the CNG avatar. i20 is losing sales but that's because of relatively extravagant pricing since the new-gen launch in 2020 and the absence of a CNG option.

All in all, there's a long-term trend in favour of longer, bigger cars. This could be due to multiple reasons:-

a) A natural maturing of the market with time. Newer generations of the same cars across segments are typically bigger than the previous generation.
b) As the average prosperity in the nation goes up, so does the size of the people. Hence, entry-level cars that could accommodate entire families in the 80s/90s are now claustrophobic for many.
c) Post-Covid, income inequalities in society have become accentuated. The impact of this is visible everywhere from FMCG volumes to 2-wheeler 110cc vehicle sales which have declined/stagnated.
d) Even new car buyers today are not necessarily first-generation car buyers who are more likely to buy an Alto.

But the need for bigger cars is not a vote against Hatchbacks. It's still an extremely popular and relevant body style.
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Old 22nd February 2024, 13:24   #39
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Re: Hatchback and SUV sales analysis | Is the hatchback segment dying?

As long as manufacturers are able to milk additional money from the customers by rebranding the entry level hatchbacks as sub-compact SUVs with minor tinkering, like raised GC, roof rails, plastic cladding etc and charge premium pricing, this trend will continue.

When customers start realizing and revert back to the more value for money options in the market, read hatchbacks, all the manufacturers will suddenly find more interest in introducing newer options in that segment.

It would be an interesting to compare the Y-o-Y growth in market share of each segment of the SUV market (sub-compact, compact, mid-size) against the market share of their comparitive hatchback/sedans to see the influence of the sub-compact SUVs in the overall growth of the SUV market
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Old 22nd February 2024, 19:15   #40
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Re: Hatchback and SUV sales analysis | Is the hatchback segment dying?

Voted No!

Look at the top-5 most selling cars for last many months. Wagon-R, Swift and Baleno have been featuring in top-5 almost consistently. In-fact, Swift was the most selling car of 2023 if I am not wrong.

So yes, the entry level hatchback segment is on decline, but cannot say that entire hatchback body type is dying.

And as many have said, pseudo CSUVs (Punch, Exter, Kiger, Magnite, Fronx, etc.) are all bigger hatchbacks.
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Old 22nd February 2024, 19:23   #41
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Re: Hatchback and SUV sales analysis | Is the hatchback segment dying?

I voted No.

In my view hatchbacks particularly the smaller ones have a place in the crowded Indian cities.
You can see it from 2 view points 1. Practicality 2. I drive a big car view

For the practicality point take for example driving a big 7 seater in bumper to bumper traffic for a regular city commute (eg: to office and back or to visit friends or simple outings) with usually just 1-2 persons in the car it is slow, cumbersome to park, simply inconvenient, in big cities like Mumbai, Bangalore or Delhi etc.. So people will keep a nifty hatchback around for these runs and that need would continue.

Having said this the other dimension is the “I drive a big car view” for this of course you have a lot of these non-SUVs which are just larger hatchbacks with front wheel drive! Being bought. Perhaps as many have said we can have another category large hatchback or something for these types of cars.

In summary, the hatchbacks should survive and be a practical part of any garage.
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Old 2nd March 2024, 07:43   #42
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Re: Hatchback and SUV sales analysis | Is the hatchback segment dying?

"Increase in average cost of hatchback" is the real reason for dwindling sales. Imagine paying 9-11 lakhs OTR for a hatchback like i20 instead of 12-14 lakhs for a Creta with bigger boot space and better build quality. Manufacturers themselves are killing the entry level segments for better profit margins.
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Old 5th March 2024, 10:46   #43
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Re: Hatchback and SUV sales analysis | Is the hatchback segment dying?

1. The price difference between an entry level hatchback & entry level supposed SUV is marginal today.

2. While car loans tenures from the earlier standards of 5 years have now stretched to 8 years thus allowing people to buy expensive cars at the same EMI.

3. This alongside the comparison shows that 42 SUV models are available versus 14 hatchback models, which is 3 times but sales are only 50% higher. We can conclude from those numbers that when the fight is mostly between lower end SUV & hatchbacks the hatchbacks win, thus calling them dying doesn't make sense.

4. YOY comparison shows that losses to the segment has been dealt by alto & tiago, which is understandable as alto lost its 800cc engine, affordability went for a toss. The price difference between alto & tiago isn't that much today, which in turn has been cannibalized by Punch. Rest have held on to their sales.

I don't see them as a dying segment but yes automakers are keen to kill them to ensure higher per vehicle sales & margins.
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Old 23rd January 2025, 09:25   #44
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Will Hatchback demand will comeback ?

Hello BHPians,

I have thought to share with you. In a long term era I believe the demand for hatchback is going to grow. I have few points to share with you to support my statement.

1. Regulatory body :- As per the government norms including taxation & fuel prices, people at some point will realize that a small car with smaller engine or may be bigger power train is more feasible than owning a SUV (including compact SUV).

2. Fuel Efficiency :- In a upcoming days I believe that this hybrid technology is going to be implemented in hatchback also which will result in great fuel efficiency. Also, the technology for EV is going to improve (including bigger batter pack, Charging station, increased range) people will buy the cheaper hatchback.

3. Over crowded :- During the long run at some point people will realize that there is so much traffic on the road, including TIER 1, 2, 3 city. People will try to go for an smaller car option (like the European country)

4. Demand for Second hand car :- Every year we see a substantial amount of increase in the prices of new car. This market will always grow, but for the people buying car for the first time will go for a new hatchback.

5. Indian mentality :- I believe the indian market is not yet up for driving pleasure, at least not for another 10 years. People will buy car on two basis basically first one is to budget and second is Need for a car in indian household. As we are already familiar that most of the rural do not have a car in their family but now things have changed. I have personally seen people buying cars in village to caters their needs.

6. Good Road condition around India :- Road condition will also play a crucial role comeback of hatchback. In todays era road condition are far more better in Rural as well as urban are in comparison to last 10 years. In my side of the state (UP) people buy high ground clearance, big tires size to caters roads of village.

Last but not least, this is personally my thoughts for the upcoming automobile industry. I request you to please share your thoughts as well if you disagree.

Happy Motoring!!!
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Old 24th January 2025, 11:53   #45
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Re: Hatchback and SUV sales analysis | Is the hatchback segment dying?

Hatchbacks will never fade like sedans did IMO, they have a larger target audience and are also more convenient due to their smaller size
They have seen decline in recent years but its not alarming plus when you think about it all the Sub 4m 'SUV's are technically just hatchbacks ok stilts
So they haven't actually lost all that much
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