Asia's Small SUV Market: European, US Carmakers Are Taking the Lead
- In Asia's two major emerging markets, namely ASEAN and India, the B segment-class small sedan and hatchback market have been dropping; however, SUVs have been increasing. Regarding SUVs, in ASEAN 5 (Indonesia, Malaysia, Philippines, Thailand, Vietnam), sales volume of 2014 was on par with that of the previous year at 330,000 units, of which small SUVs rose 15.7 percent to 76,000 units. Meanwhile, in India, the SUV market went up 3.2 percent to 358,000 units, of which small SUVs increased 14.3 percent to 121,000 units, posting remarkable growth.
- The expansion of the small SUV market in ASEAN and India is attributed to improved purchasing power thanks to economic growth and advancing urbanization. Up to now, strong demand for frame-type medium and large SUVs has been driven by bad road conditions in regional areas of ASEAN and India, while small SUV demand has been rising in urban areas.
- Under these circumstances, European and US manufacturers, namely Ford and Renault, have increased sales in the small SUV market. Since 2013, sales of the Ford EcoSport increased by 70,000 units annually and that of the Renault Duster by 40,000 units annually in ASEAN and India. Of India's small SUV market, the Ford EcoSport accounts for over 40 percent, while the Renault Duster controls over 30 percent. In ASEAN, the Ford EcoSport controls 15 percent of the small SUV market. As for other brands in India, Fiat launched the Punto-based Avventura in October 2014 and VW released the Polo-based Cross Polo in January 2015. Moreover, Hyundai launched the i20-based i20 Active in March 2015. The Korean carmaker also plans to release the ix25 within the year, positioned below the ix35 (Tucson), in India as well as ASEAN.
- Japanese carmakers' small SUV strategy varies from maker to maker. Toyota launched the Etios-based Etios Cross in May 2014, while Honda released the Jazz-based HR-V in November of the same year. Mazda plans to launch the Skyactiv engine-powered CX-3 in ASEAN which was released in Japan in February 2015. In the coming years, recovery of Japanese carmakers through new-vehicle offensive in the small SUV market will surely attract attention.
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