Market of Fads: The Ever Changing Trend Of Indian Cars

Ishan looks at how rapidly consumer preferences are changing in the Indian market  

For the longest time, the Maruti 800 – the ubiquitous hatchback that redefined motoring for a vast majority of the Indian buying public – remained the best selling car in India. In fact, if I’m not wrong, it remained at the top for just over two decades, before its successor – the Alto – took over that mantle and has held it since.

However, today, the situation is changing quite sharply. Consider this – in the month of April this year, the Maruti Dzire fell short of superseding the sales figures for the Alto by just 401 units. In a total volume of roughly 20,000 units each, that’s a difference of just 5 percent! Who would have thought that the best selling car in the country would be challenged by a car two segments above it?

But that’s a reflection of the changing buying patterns of the Indian consumer today. Barring a few old favourites, there are no longer cars that continue to sell in record numbers for years on end. Consumers today aren’t looking just for a reliable, value-for-money machine – they’re also looking at the novelty and exclusivity of a product. Sort of like how ice creams are marketed, as the flavor of the month.

I think this trend began around the time that the Etios was launched, over three years ago – at which time there was a huge waiting list on the car. It was a Toyota, so, of course, people were queuing up to lay their hands on one. However, less than 12 months later, the waiting lists were beginning to dry up and the car was available off the shelf. Now this was a combination of both increased production from Toyota, but also the fact that customers had found a new hot favourite by then.

Since then, such instances have become pretty common. When cars are launched, the hype around them seems to bring customers to them like bees to honey, but once the initial hype has passed, and more and more cars appear on the roads, this excited level of interest just dies down. The latest example of this is the Renault Duster – while, till a few months ago, waiting lists stretched six to eight months long, with the launch of the EcoSport, suddenly, sales of the Duster have dipped and the car is available off the shelf today. Some more examples are the Swift Diesel, Hyundai Verna, and the Mahindra XUV500 – all of which commanded long waiting lists in the recent past, but are available off the shelf today.

Now, one of the factors behind this could be supply constraints on the manufacturing side – whether genuine or artificial. But, the fact of the matter is that today’s customers are simply not fixated on a particular product for too long. While many are willing to wait for a while, most are now too easily distracted by other product launches and simply choose to spend their money elsewhere.

Two other factors are the fact that Indian consumers today have an unprecedented level of competent products to choose from – something which was missing in the past. And, secondly, as our market and consumers mature, this ‘follow the herd’ approach is slowly, but surely, changing with consumers more willing to find their own way in the market – rather than relying on what people around them choose.

What does this entail for the manufacturer? Well, it means that they’re faced with an increasingly demanding and discerning customer base, and, from their perspective, there’s a constant need to continue developing and improving their products. For consumers, consequently, it means better products – and, hopefully, better value along with improved service.

As far as I can tell, this trend couldn’t have come any sooner – and is a welcome development in the market. After all, anything that forces manufacturers to up their game and work harder can only be a good thing for consumers.