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Global SUV Market to Reach 30.16 Mn Units by 2020


Published On Sept. 12, 2017 By Minal

A strong truck-like chassis, but operated as a family vehicle, SUV’s are ruling the Asian as well as global market like never before! We can see that the growing demand for SUVs. It can be attributed to the various advantages offered by the vehicle segment, including greater fuel efficiency than passenger cars due to its small engine, compact body.

We can define the SUV as "a large vehicle that is designed to be used on rough surfaces but that is often used on city roads or highways."

Here in Asia-Oceania, SUV and sub-reduced SUV market is ready to enrol the most noteworthy CAGR amid the gauge time frame. The generation of SUVs and sub-compact SUVs is relied about to boost in nations, China and India, attributable to accessibility of financially savvy work and good government approaches.

Four-wheel-drive SUVs are considered light trucks in North America and they were regulated less strictly than passenger cars in the United States.

Whereas as we see, other countries refer to it as "off-road vehicle", "four-wheel drive" or "four-by-four" or they simply use of the brand name to describe the vehicle like "Jeep" or "Land Rover" are more common.

In Europe also, the term SUV has a similar meaning. In India, all SUVs are classified in the "Utility Vehicle" category.

SUVs are known for their high-ground-clearance. SUVs are classified as,

1. Mini SUV

2. Compact SUV

3. Mid-size SUV

4. Full size SUV

5. Extended Length SUV

If we analyse in the meantime of 1990s and early-2000s SUVs became popular in the United States, Canada, India and Australia amongst the market customers.

The SUV and sub-compact SUV market, in terms of sales, is projected to reach 30.16 Mn Units by 2020, growing at a CAGR of 5.36% during the forecast period. The market has witnessed considerable growth in countries such as the U.S., China, India, and Mexico, owing to advantages such as low cost, compactness, stylistic design, and high manoeuvrability.

All of us can see, one of the latest trends gaining traction in the market is the increasing demand for small and compact SUVs in emerging markets and the leading auto makers are focusing on developing entry-level, small size and medium-sized SUVs to extend their customer base and increase their product portfolio.

We can state in the future rapid development and production of small and compact SUVs will be a key factor in fuelling the growth of SUV market in the coming years owing to their massive sales.

The SUV and sub-compact SUV market is dominated by globally established companies,

Ford Motor Company (U.S.),

Tata Motors Ltd. (India),

Toyota Motor Corporation (Japan),

Honda Motor Co., Ltd. (Japan),

Hyundai Motor Company (South Korea),

General Motors (U.S.).

These companies have constantly adopted growth strategies such as new product development, expansions, mergers, and joint ventures to gain traction in the sub-compact SUV market.

We can do Segmentation by vehicle of the SUV market as

Small-sized SUVs

Medium-sized SUVs

Large-sized SUVs

The medium-sized SUV segment dominated the global SUV market and accounted for the largest market share during 2016. The segment’s high growth can be attributed to the high-volume sales and demand for such category of SUVs. The medium-sized SUV market is extremely fragmented with the availability of numerous models. Medium-sized SUVs provide rugged off-road capabilities and stiffened suspensions. Some of the popular medium-sized SUVs include Toyota Fortuner, Honda CRV, Jeep Cherokee, Chevrolet Equinox, and Hyundai Tucson.

To conclude, SUVs have great chances in developing countries, such as China and India thereby making it a rising sun in the future auto mobile market.