Smaller families, bigger cars

Chota parivaar, sukhi parivaar might be your life funda but that is not stopping people from living big. Be it spending more on exotic holidays, buying weekend homes or purchasing big cars. Recently, small cars like Maruti 800 and Hyundai Santro that drove the passenger car segment for so many years, possessing 50% of the market share is now driving to a change.

First time car buyers are now opting for more spacious, feature rich hatchbacks and sedans like Maruti Swift, Swift Dzire, Hyundai i20, Honda Brio and Ford Etios. While the rising interest rates, petrol prices and inflation has deterred many from purchasing cars, those who can, prefer spending it on big, spacious, diesel cars. Between April and September 2012, the share of small cars like Maruti 800, Wagon R, Alto, Hyundai Santro, Eon, i10, Chevrolet Spark and Tata Nano dropped to 32% from 52% in 2007-08.  The premium hatchbacks like Ritz, Swift, Brio, i20 and Figo have been growing at a compounded annual growth rate of 30% over the last five years.

So while the Metros, along with two and three tier cities alike are fighting for space, statistics show that there has been a substantial rise in the sale of big, feature rich but space consuming vehicles. Roads are getting smaller; cars are getting bigger; any guesses on what this is going to result in?