Mahindra XUV500: Annihilating the premium sedan segment!

In September the XUV500 sold 4,603 units while the combined sales of the Chevrolet Cruze, Honda Civic, Hyundai Sonata, Maruti Suzuki Kizashi, Skoda Laura and Toyota Altis were only 1,059 units.

mahindra xuv500

Sedans losing sales to SUVs at an alarming rate

With such a huge difference between the XUV500 and premium sedans could it be the end of sedans in this price band? Let’s look at the market trend over the past 12 months.

  • Twelve months back, in October 2011, SUVs in the Rs.10-18 lakh segment sold 1,754 units as against the combined sales of sedans in the segment which sold 1,424 units.
  • Then, 6 months back, in March 2011, SUVs had gained a 60 percent market share with a total sales of 3,803 units as against 2,480 units sold by sedans. Thus, the gap in monthly sales widened from 300 units a month in October 2011 to over 1,300 units in March,  2012.
  • And now, that gap has widened even more: SUVs sold 4,912 units vs 1,059 units for sedan commanding a high 82.30 percent of the market share.

Take a look at the table below to see how the XUV500 faired against sedans over the past few months:

[table id=991 /]

XUV500 leads the charge

The XUV500, with sales of 4,603 units in September 2012 accounted for 77 percent of the total market share in September where 5,971 vehicles were sold overall. In the past 6 months, XUV500 has averages monthly sales of over 3,800 units—while combined average sales of sedans have been just a little over 1,300. Also see: Mahindra XUV500 bags 4-star crash rating in Australia

XUV500 vs. Toyota Corolla Altis

corolla altis photo 115

XUV500 clocked ten times more sales than the market leader amongst the sedan, Corolla Altis: 4,603 units vs. 424 units. And September was not aberration. In August, July and June the XUV500 sold 3,979 units, 4,007 units and 3,452, respectively compared to the Altis which sold 492, units and 540 units in August and June respectively while the Cruze led the sedans sales chart in July 557 units. Also read: Mahindra XUV500: Known issues and solutions

Whichever way you look at it, sedans in the Rs. 10-18 lakh bracket have been losing ground heavily—the absolute sales numbers have shrunk by half; the overall market share has dropped to less than 20 percent.

While this may not signal the end of sedans completely, the category desperately needs a bunch of exciting launches with very attractive price-value-performance equation.