Entry hatchback and mid-SUV segments witness strong demand in August 2020

- Hyundai Creta and Kia Seltos are key contributors in the mid-SUV segment 

- Maruti Suzuki Alto, Maruti Suzuki S-Presso, and the Renault Kwid are key contributors in the entry hatchback segment 

There has been a significant improvement in car sales in India in the month of August. Almost all vehicle segments registered positive growth in sales last month, except for the premium SUV, premium sedan, and the luxury sedan segments that witnessed a drop in sales by 16 per cent, 40 per cent and 39 per cent, respectively. 

The compact hatchback segment saw the largest growth in terms of volumes with 56,151 unit sales in August 2020. However, in terms of Year-on-Year (YoY) growth, the entry hatchback segment has registered the highest 83 per cent growth in sales with 23,887 unit sales in India last month as compared to 13,065 units sold in August 2019. The mid-SUV segment has also registered an impressive YoY growth of 65 per cent with 35,121 unit sales in August 2020 as against 21,333 units sold in the same period last year.

The Hyundai Creta and the Kia Seltos have witnessed a significant growth in sales in the mid-SUV segment. The Creta has registered 96 per cent growth in sales with 11,754 units sold in August as against 6,001 unit sales in the same period last year. The Kia Seltos, on the other hand, has witnessed 71 per cent growth in sales with 10,655 units sold in India last month as compared to 6,236 units sold in August 2019.

The entry hatchback segment continues to be the highest seller in terms of sales with 14,397 units sold in August 2020 as against 10,123 units sold in the same period last year, thereby registering a growth of 42 per cent. The Maruti Suzuki S-Presso has been the second highest selling model last month with 5,312 unit sales. In terms of YoY growth, the Renault Kwid has witnessed 68 per cent growth in sales with 3,677 units sold in August 2020 as against 2,191 units sold in the same period last year. 

Given the current volatile market conditions, improvement in sales across majority segments is a positive sign. The current decline in luxury and premium segment is also likely to improve over the next few months.