First quarter of this century: How car buyers evolved across 25 years
When this century started, India was still a market obsessed with mileage. 25 years down the line, while mileage remains in the list, it is trumped by bhp, torque and technology. Here's a look at how the country's car buyers have shifted preferences.
New Delhi: When India woke to the new millennium, it was still caught in the world of hatchbacks. It was the world of Maruti 800, Hyundai Santro and Tata Indica. Cars in the new century weren’t just a status symbol, as they slowly became more affordable to buy and run. The family man was upgrading from two-wheelers or public transport.
The market was all for the hatchbacks to rule, as back in the day, SUVs were more agrarian and reserved for rural terrain or government fleets. Over the course of the last 25 years, cars have become much more than a status symbol or an object to take from point A to B. There has been a major shift in the cars as well as the buyers.
Early 2000s: The years of hatchbacks
While the hatchback domination had started in the 1990s, with the likes of Maruti Suzuki 800 and Zen. Coming into this century, it reached its peak with the arrival Maruti Suzuki Alto and the Hyundai Santro. They cemented the the hatchback concept in the country, over the likes of heavy SUVs like the Mahindra Bolero or Tata Sierra. The cars were made for the chaos of the cities, going through narrow lanes, fitting in tiny parking spots and were easy to run and maintain.
The country was obsessed with fuel efficiency, and boy, did Maruti, Tata Motors and Hyundai respond well to this. You had the Tata Indica with its wide boy, tough image from Tata, the WagonR’s tall boy styling from Maruti and the Hyundai i10, fitting perfectly in this symmetry.
Then came the concept of premium hatchbacks, and we had early examples of these in the Maruti Swift and Hyundai i10 that, while maintaining the size and efficiency, came with better safety features, better build quality and were the one step up in the hierarchy.
On the sides of it, of course, there were the mid-size saloons like the Honda City, Maruti Suzuki Esteem, Baleno, Hyundai Accent and Tata Indigo. These, however, didn’t account for the maximum sales and despite the price tag, felt more executive class.
Arrival of the ‘Compact’ concept and a rise in diesel options
With more foreign car companies coming into the scenario, there was a shift in the car world yet again, with the sub-four-meter cars first time making their presence felt right at the start of the second decade of the 21st century. This segment was giving a strong competition to the three-box sedan, coming with more space, road presence, at not much higher pricing and easier parking than most saloons.
The shift was largely down to the likes of the launch of the 2012 Renault Duster, which gave the Indian buyers the muscular stance of an SUV in a footprint design made for city life. In the previous decade, the indian buyers had rejected the concept of estate cars like the Tata Indigo Marina, Skoda Octavia Combi, and Fiat Weekend. However, the Duster was preferred for its height and stance.
The era also saw the diesel engine fever, and almost every carmaker was looking to fit a diesel engine, including the hatchbacks. It was pertinent that your car had the ‘DDiS’, ‘CRDi’ or ‘TDI’ written on it, or you were missing the torque-heavy, high-mileage revolution. It saw the likes of Volkswagen and Ford bring their European build quality to the mass market.
By 2016, the Indian consumers had gone from just commuting with a car to wanting global standards along with solid road presence in their cars.
The SUV invasion with a premium feel and focus on safety
From 2017, the Indian market was looking towards the likes of Hyundai Creta and Maruti Brezza and just ate away at the saloon and hatchback market. Buyers were more towards high ground clearance to combat the potholes and monsoon floods. Cars were now coming with things with touchscreens, sunroofs and ambient lighting.
The features were becoming increasingly common with the cars, and when the MG Hector came with the whole interactive software, voice commands, it was clear that SUVs, in particular off-roaders, could no longer be just some metals stacked high above the ground.
The likes of Jeep Compass, Tata Harrier and Scorpio N were packed with infotainment screens, powered tailgates, and powered and ventilated seats.
Further, with Tata Motors and Mahindra leading the charge, Indian buyers were becoming concerned with GNCAP ratings. These two brands had done well, and it became a marketing superpower to have on your side. The Indian portfolios of the global brands had to be upgraded to meet the standards.
Where the market stands now
The modern demands are for ADAS and more premium and connectivity. There has been a drop in the hatchback market, which now has a market share of just 22 per cent. Customers are looking towards micro SUVs like the Hyundai Exter and Tata Punch. The UVs take about 52 per cent of the market share in passenger vehicle sales.
There is the electrification bug that in 2024-25 saw a crossing of 2 million annual units. EV penetration has climbed to almost 4 per cent, and the likes of MG Windsor EV have lowered the entry point of the segment. Today, the Indian roads are filled with tech on mobility and screen-filled cabins. The cars are more than just tools, but a place which has the clearest expressions of the customer.