Homevideos Newsauto News

Utility vehicles demand on the rise; here's why according to sector experts

videos | IST

Utility vehicles demand on the rise; here's why according to sector experts

Mini

CRISIL's latest report on the auto sector puts the spotlight on the utility vehicle segment booming and rising multi-fold in India vis-a-vis the long-held view that India is a small car market. CNBC-TV18 spoke to Pushan Sharma, Director of CRISIL Research, and Jay Kale of Elara Capital to discuss this report.

CRISIL's latest report on the auto sector puts the spotlight on the utility vehicle segment booming and rising multi-fold in India vis-a-vis the long-held view that India is a small car's market. CNBC-TV18 spoke to Pushan Sharma, Director of CRISIL Research, and Jay Kale of Elara Capital to discuss this report.
Talking about utility vehicle trends Sharma said, “From 2019 to 2020 onwards that is 2021 and 2022, the utility vehicles market from 28 percent has jumped to 48 percent. Going forward over the next five years utility vehicles will be closer to about 50 percent and small cars which were about 65 percent two decades back that will go to around 40 percent.”
Kale said, “Maruti’s competitive positioning is much weaker in the UV space than in the car space and that has also been one of the reasons why investors’ concerns were valid in the last one or two years, and the stock has also kind of to that extent, taken that kind of beating or underperformance largely in the last couple of years, because of the loss of market share in the UV side. Our view is that we are close to the bottom of Maruti’s UV market share, and with incremental launches, that market share is expected to increase in the next couple of years.”
For full interview, watch accompanying video.
Catch all the stock market live updates here.
next story

Market Movers

Currency

CompanyPriceChng%Chng