Compact SUVs is one of the hottest segments in India. Almost, every manufacturer now has a compact SUV now. There is very stiff competition among compact SUVs. The Brezza was the segment leader for the longest time until other competitors like Hyundai Venue and Kia Sonet arrived. People are now even considering pre-owned vehicles because the used market is quite strong right now. Here, is market research of the compact SUVs that reveals the resale value.
Maruti Suzuki Vitara Brezza
Maruti Suzuki discontinued the diesel engine of the Brezza when because the 1.3-litre Fiat-sourced engine could not be upgraded to BS6 emission norms. The engine was known for its fuel efficiency and torque. It was also very reliable. The diesel engine was replaced with a petrol engine. Till now, there are a lot of people who prefer the punch of a diesel engine in a compact SUV. Due to this, the older Brezza with a diesel engine has held its value really good. In fact, a three-year-old diesel Brezza has a higher resale value than a two-year-old Hyundai Venue.
The Venue was one of the late entrants in the compact SUV segment but it still managed to take a big chunk of Vitara Brezza’s market share. Hyundai has often sold more Venues than the Vitara Brezza. We can say that Vitara Brezza’s biggest and strongest competitor is the Hyundai Venue. Venue has been able to retain a good resale value because it has received a significant price hike since it was first introduced in the Indian market. The variants with a manual gearbox have held their value better than the variants that were equipped with a dual-clutch automatic transmission. This is because some people have faced few issues in the long term with automatic transmission. Some people complained about the transmission getting heated.
Mahindra’s XUV300 has been priced on the higher side. One of the reasons for that it is underpinned by the Ssangyong Tivoli platform. This does help in making the XUV300 the safest compact SUV in the segment. It scored a solid 5 stars in the Global NCAP crash test. It also comes with a lot of equipment and features and strong engines. The sales might not be very good as compared to the competitors but there is still a value factor associated with the XUV300. People know this and it has helped the compact SUV to hold its value pretty good.
The Ecosport is the oldest compact SUV in India. Due to this, the pre-facelift Ecosport i.e. MY2017 and before have seen a higher depreciation rate whereas the MY2018 has a depreciation rate similar to the competition. The pre-facelift loses its value at a much higher rate because of its ageing design. Ecosport just does not look as modern and attractive as its rivals.
The Freestyle is the crossover version of the Figo hatchback. The sales off Freestyle are not really good. Ford’s vehicles are known to have a fun to drive characteristic but the design has started to show its age when compared to competitors. Due to this, the resale value of the Freestyle with a diesel engine drops significantly after its third year.
Honda’s WR-V is more of a crossover than a compact SUV. It looks like a jacked-up version of Jazz. At first, it did catch the attention of the customers because it was the most affordable compact SUV that came with an electric sunroof. However, once the hype of the electric sunroof was over, the sales of the WR-V fell drastically. Also, other compact SUVs are offered in more engine and transmission options. This is also a reason behind the WR-V having the highest depreciation of the lot.
The Nexon has helped Tata Motors in capturing the Indian market share. It has seen a pretty good demand despite being in stiff competition. However, the resale value of the Nexon is not good. This is especially true for the petrol versions with a manual gearbox. The petrol engine is just not as strong as the rivals. Interestingly, the petrol engine with AMT gearbox has held its value better because it is being considered by people who will be driving in the city mostly and want the convenience of an automatic gearbox.