With connected cars and compact SUVs, automobile sector turns focus to under-30 buyers: Report

The automobile industry in the country is quickly shifting its focus, catering to an emerging segment of buyers under the age of 30.

An analysis of sales by car companies in an Indian Express report showed that around 25 per cent of sales are coming from this segment, with Maruti Suzuki, Hyundai Motor and Tata Motors, all reporting a spike in car sales in this segment.

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These 3 automobile giants constitute almost 70 per cent of the total car sales in India. While Maruti and Hyundai's contribution to this segment lies at about 23 per cent, Tata Motors saw nearly 30 per cent of its total sales coming from buyers under the age of 30.

The industry has been adding new features such as sunroofs, air purifiers as well as high-end music systems to cater to their demands. There has also been a continuing demand for SUVs as well, mainly the ones that are less than 4 metres in length.

There has also been a greater demand for new features in the car too, the report stated. Mainly for the connected car feature, which was in single digits till 2 years back.

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“There are a variety of reasons for people demanding features in their cars, with one in every four cars connected through a technology. In addition to the change in profile of buyers, a lot of people have started to use cars for travel, which means they spend a lot of time in their cars and, hence, demand a lot of these features. They do not want to compromise,” said Tarun Garg, director (sales), Hyundai Motor India.

Hyundai has witnessed a hike in demand for its SUV Venue, which saw 30 per cent of its total sales coming from buyers under the age of 30, with a similar jump in sales for Tata's Nexon, another compact SUV.

“SUVs are leading the demand charts across India and the trend is similar for Tata Motors. SUVs contribute nearly over 65 per cent, followed by hatchbacks at around 13 per cent of the total sales,” the company was stated in the report.