Entry-level hatchbacks losing market share; expect to see even fewer models

Entry-level hatchbacks —cars shorter than 3,600 mm in length and engine smaller than 1.0-litre — continue to lose traction amongst customers because of which manufacturers have also slowed down on new models and variants. In FY19, hatchbacks formed 13.6% of passenger vehicle (PV) sales, and had five popular models — Maruti Suzuki Alto, old Wagon R, Hyundai Eon, Renault Kwid and Tata Nano. In FY20, their share dropped to 10.6%, with Tatas discontinuing the Nano and Hyundai the Eon, and Maruti Suzuki discontinuing the old Wagon R, but launching the S-Presso. In FY21, the share further dropped to 9.8%, with just three models (Alto, S-Presso and Kwid), and marginally increased to 9.9% in the first five months of CY2021.