Trends: Compact SUVs

Prawaas 4.0 Ends On a High Note

Growing to clock 54,850 units in February 2021 as against the sale of 27,273 units in the corresponding month last year, the compact SUV segment has come to include the participation of almost all the manufacturers in the country today. The Kushaq marks the latest entry, and clearly the most exciting in terms of what it has to offer. A part of the segment that arguably is the most trending as far as passenger vehicles are concerned, the Kushaq is indicative of the direction in which the segment of compact SUVs is heading in. It is was until recently led by Maruti Brezza, a compact SUV segment that shares its platform as well as the assembly line with the Toyota Urban Cruiser. Said to have grown at the expense of mid-size sedans (including compact sedans) and premium hatchbacks, the compact SUV segment consists of no less than 11 offerings today. They are proof of the fact that they are not missed by any manufacturer. Overtaking the Maruti Brezza as the most selling compact SUV in April 2021, the Hyundai Venue has demonstrated how manufacturers like Hyundai, which began by selling high-end SUVs like Terracan and Santa Fe in India, are warming up to the trend of compact SUVs that is unique to India. Clearly so, when one understands that the Renault Duster was born out of the highly popular Renault Clio as a cost-effective crossover in Europe. It soon challenged more premium offerings there like the Skoda Yeti. Highlighting Indian automobile buyers’ psyche of cost consciousness, the compact SUVs like Kushaq are highlighting new growth prospects, technologies and features.

 

Tech and price trends

Considering the starting price of Brezza and Venue at INR 7.39 lakh and INR 6.92 lakh approximately, the Kushaq, at a starting price of Rs.10.5 lakh is certain to appear costly. Zac Hollis, Skoda’s director of Sales, Service & Marketing, has informed through a tweet that even the basic ‘Active’ variant carries a significant additional equipment over its competitors (see the comparison chart). The Kushaq is being offered with a TSI technology engine right at the basic level, he has added. Being offered with a cylinder deactivation technology that shuts two out of the four cylinders by sensing the load (via the accelerator pedal input) to ensure superior fuel efficiency and lower carbon footprint, the Kushaq reflects a technology trend that is taking shape among compact SUVs as new products join the fray. So, if the Renault Duster and one or two other vehicles in the compact SUV segment offer a turbo-petrol engine like the Kushaq does, right at the basic level, a majority offer a MPI engine. The technology trend concerning compact SUVs ironically also highlights a stress on petrol engines. The BSVI emission norms and decreasing price gap between petrol and diesel are said to be the reasons. Presenting the superior drive-ability and fuel efficiency of diesel are the turbo-petrol (also termed as Gasoline Direct Injection) models and variants. In the Kushaq, Skoda has termed the technology coinage as TSI.

If the compact SUV offerings like the Kushaq, Brezza, Toyota Urban Cruiser, Duster and many others highlight a rising trend of petrol only variants in-line with the reasons mentioned above, an amount of technological exploration is on in the area of transmissions. As urban buyers warm up to compact SUVs and make a shift over from sedans and hatchbacks, almost every model being offered on the market is available with an option of an automatic gearbox. The highlight of this trend is the mushrooming of dual-clutch automated transmissions that support sporty and agile driving experience. As the first product to spring from Volkswagen Group’s India 2.0 project (see box), the Kushaq, is available with a choice of the much acclaimed DSG automated transmission. Apart from just one or two vehicles in its segment offering a CVT ‘auto’ transmission, and what could be termed as conventional ‘torque convertor’-based auto-box, many compact SUVs are offering their version of DSG automated transmission by calling them as DCT (Dual-Clutch Transmission). Most basic trims in the segment are offered with a 5- or 6-speed manual transmission.

Feature trends

Almost all the compact SUVs being offered in India are front-wheel drive with the engine and trans-axle located transversely at the front. The only four-wheel drive compact SUV, Duster, has already lost its arrangement to power both the axles. A look at the powertrain arrangement of the compact SUVs and their monocoque body construction, and it will be clear that they could be described as front-wheel hatchbacks with ‘lift-up’ suspension, an appropriate body style, and bigger dia. wheels and higher ground clearance. Most compact SUVs are equipped with McPherson strut suspension at the front and a twist beam axle at the rear. The Kushaq is no exception. It is keen to set itself apart from the Korean, Japanese and homegrown offerings like the Mahindra XUV300 with safety, quality, design and technology, according to Hollis. Offering TSI engines and DSG transmission, which were until now found on more premium offerings, the Kushaq, reflects its technological composition and the fact that it is the first vehicle to roll-out of the India-centric project set up with an investment of Euro-one billion, in its price positioning. The compact SUV with the lowest starting price – the Hyundai Venue at Rs.6.92 lakh approximately, offers a 1.2-litre MPI petrol engine at the basic level. It is mated to a 5-speed manual gearbox.

When it comes to features, none of the compact SUVs on offer, including the Kushaq, is immune to the fact there is a direct bearing of price. The basic variants get what could be termed as ‘essential’ features whereas the top-end variants get a variety of ‘bells and whistles. Put together all the them and they include voice command, LED headlamps and tail lamps, rear view monitor, airbags, ABS and EBD, electronic parking brake, air purifier, start/stop, telematics, sunroof, TPMS, ESC, rear parking sensors, VSM, hill-start assist, cruise control, keyless entry, rear parking camera, touchscreen infotainment system and others. A look at the features offered by the compact SUVs, and a clear trend is evident in terms of technology. This technology pertains to an ability to stay connected with an increasingly smarter use of telematics. Many compact SUVs offer satellite navigation, tracking and connectivity features that are unique to their manufacturers. Ford, for example, offers the SYNC connectivity technology on the EcoSport. What makes it interesting is that a lot of software work relating to the connectivity features and various other functions of these compact SUVs has happened in India. If the Brezza’s local content amounts to 98 percent, that of the Kushaq is 93 percent.

 

 

Summing up

Emerging as a hot-bed of style and technology (the Tata Nexon is also available as an electric compact SUV and the MG Hector as a hybrid compact SUV), the trend pertaining to compact SUVs is getting clearer and clearer with every new product introduction. It is underlying quality, safety, comfort, localisation (read as Atmanirbhar Bharat) and an ability to control costs. 

 

Maruti Suzuki India Crosses 30 Million Unit Sales Milestone

Maruti Suzuki India

Maruti Suzuki India, the country’s leading passenger vehicle manufacturer, has attained a new milestone by crossing the 30-million-unit sales milestone in the domestic market.

The new benchmark was attained by the company over a course of 42 years, with the first 10 million unit sales taking 28 years and 2 months to achieve.

The 20 million unit sales took 7 years and 5 months, while the recent milestone took just 6 years and 4 months.

Interestingly, the entry-level hatchback Alto was the most preferred model in the country, with over 4.7 million units sold, followed by Wagon R with 3.4 million units and the sporty Swift with 3.2 million units.

The Brezza and Fronx SUVs also played an instrumental role in contributing to the sales milestone, being featured among the top 10 models sold in the country.

It was on 14th December 1983, Maruti Suzuki India delivered its first model, the iconic Maruti 800, to its first customer.

Hisashi Takeuchi, Managing Director & CEO, Maruti Suzuki India, said, “When I look at the length and breadth of India and think that 3 crore customers have placed their trust in Maruti Suzuki to realise their dream of mobility, it fills me with humility and gratitude. Yet, with car penetration at approximately 33 vehicles per 1,000 people, we know our journey is far from over. We will continue to make every possible effort to bring the joy of mobility to as many people as we can, while also be an asset to both the economy and the environment at the same time.”

Sharad Agarwal Is Tesla India’s First Business Head

Sharad Agarwal

American electric vehicle maker Tesla has appointed Sharad Agarwal, former Chief Business Officer of Classic Legends, as its new business head, according to a report by Bloomberg.

The report further stated that Agarwal joined the EV maker a week ago and is tasked to drive sales for Tesla in India, which as per industry observers, has not performed as per the company’s expectations.

Agarwal, an automotive industry veteran, had begun his career with TVS Motor Co as Area Sales Manager in December 2002, before joining Mahindra First Choice Wheels as its Business Head for North and Eastern region in March 2007.

It was in January 2013, he moved to Audi India as the head of Sales, before taking over as the head of Lamborghini India in April 2016, where he spent almost 9 years, before joining Classic Legends.

During his tenure at Lamborghini, the Italian super luxury car maker saw its dealerships across India achieved a Return on Sales (RoS) of more than 10 percent, setting a new benchmark for the automotive business in the country. He also grew India’s ranking for the automaker as the third market globally in terms of PR visibility in 2021.

He also expanded Lamborghini India’s reach to over 60 cities, with sales volumes from Tier 2 and Tier 3 cities contributing more than 25 percent of the total.

Tesla, which formally started deliveries in September 2025 with its first dealership in Mumbai and the second facility in Delhi, has till date delivered 114 vehicles, of the estimated 600-plus bookings.

File photo for representational purposes only.

Mahindra & Mahindra Reports INR 36 Billion Net Profit For Q2 FY2026

Mahindra Rise

Mumbai-headquartered business conglomerate Mahindra & Mahindra has announced its financial results for Q2 FY2026 with consolidated Revenue reaching INR 461 billion, marking a 22 percent YoY growth.

The consolidated Profit After Tax (PAT) stood at INR 36 billion, a 16 percent increase YoY. The company stated that, excluding specific one-time impacts, PAT growth was 28 percent YoY.

Mahindra’s Auto business reported sales of 262,000 vehicles, up 13 percent, which includes around 146,000 SUV sales. This translated to a revenue of INR 271 billion, up 25 percent YoY, while net profit came at INR 15 billion, up 8 percent YoY.

On the other hand, the farm sector reported its highest ever Q2 market share at 43 percent with sales of 123,000 units, up 32 percent YoY. The revenue came at INR 102 billion, up 25 percent, while consolidated net profit came at INR 11 billion, up 45 percent YoY.

Dr. Anish Shah, Group CEO & Managing Director, Mahindra & Mahindra, said, “We are pleased with the strong execution and solid performance delivered across the group in Q2 FY2026. Auto and Farm sustained their leadership with consistent gains in market share and profitability. TechM is progressing well on its transformation journey. MMFSL achieved a 45 percent PAT growth and remains committed to quality growth and digital transformation. Our Growth Gems are steadily advancing towards their ambitious goals, reinforcing our long-term value creation potential.”

Rajesh Jejurikar, Executive Director & CEO (Auto and Farm Sector), Mahindra & Mahindra, said, “Strong performance of our Auto and Farm businesses continues in Q2 FY2026 reinforcing our leadership position, with a gain of 390 bps YoY in SUV revenue share, and 100 bps YoY in LCV (< 3.5T) market share. In Tractors, we gained 50 bps YoY to reach 43 percent market share. Our Auto Standalone PBIT margin (excl. e-SUV Contract Mfg.) improved by 80 bps to 10.3 percent and core Tractor PBIT margins improved by 190 bps to 20.6 percent.”

Amarjyoti Barua, Group Chief Financial Officer, Mahindra & Mahindra, “Our solid Q2 consolidated results reflects the strength of our diversified portfolio. We continue to deliver on our strategic priorities. We had strong cash generation in the first half, delivering over INR 100 billion of operating cash flow. We remain committed to sustainable growth and value creation.”

Hyundai Motor India Debuts All-New Venue And Venue N Line At Prices Starting INR 789,900

Hyundai Venue

Hyundai Motor India Limited has globally launched the all-new Hyundai Venue and Hyundai Venue N Line, revising its popular compact SUV with prices starting INR 789,900 (ex-showroom).

The new Venue SUV is built on Hyundai’s Global K1 enhanced Platform. It has dimensions of 3,995 mm (Length), 1,800 mm (Width), 1,665 mm (Height) and a 2,520 mm Wheelbase.

The vehicle introduces the Connected Car Navigation Cockpit (ccNC) system, which NVIDIA accelerates. Technology includes Dual 62.5 cm (12.3-inch + 12.3-inch) curved panoramic displays and a 31.24 cm (12.3-inch) ccNC Navigation system. Up to 20 controllers are capable of Over-the-Air (OTA) vehicle updates.

Safety features include 6 airbags and Hyundai SmartSense ADAS Level 2 with 16 features. It is available with three powertrain options: Kappa 1.2-litre MPi petrol (5-speed manual transmission), Kappa 1.0-litre Turbo GDi petrol (6-speed manual or 7-speed DCT transmission) and U2 1.5-litre CRDi Diesel (6-speed manual or 6-speed automatic transmission).

The N Line is available in two variants, N6 (MT/DCT) and N10 (DCT). It is powered by the Kappa 1.0-litre Turbo GDi petrol engine. This engine delivers 88.3 kW (120 PS) and 172 Nm of maximum torque. Transmission options are a 6-speed manual or a 7-speed DCT. The vehicle includes paddle shifters, traction control modes and drive mode select. Technology features include the 31.24 cm (12.3-inch) ccNC Navigation system accelerated by NVIDIA, and up to 20 vehicle controllers capable of over-the-air (C-OTA) updates. For safety, the N Line is equipped with ADAS Level 2 with 21 features and over 70 advanced safety features. It features disc brakes on both the front and rear axles.

Unsoo Kim, Managing Director, Hyundai Motor India Limited, discussed the company's deep commitment to the Indian market, confirming an investment of over INR 450 billion. He noted that the all-new Hyundai Venue is the first product from the new Pune manufacturing plant and the first of 26 products planned by 2030.

"At HMIL, our commitment to India runs deep. We have recently announced an investment of over INR 450 billion, reaffirming our long-term vision for this vibrant market. The all-new Hyundai Venue marks the beginning of an exciting new chapter and it is the first product to roll out from our state-of-the-art Pune manufacturing plant and the first among the 26 products we plan to introduce by 2030. The launch of the all-new Hyundai Venue and Hyundai Venue N Line represents a significant milestone in our journey of automotive excellence," said Kim.

Tarun Garg, Whole-Time Director & COO, Hyundai Motor India, highlighted the Venue's strong market presence, with over 700,000 units sold and a consistent top-three position among compact SUVs in India. He confirmed that the all-new Hyundai Venue will be manufactured exclusively in India for global markets, supporting the 'Make in India for the World' vision.

"Since its debut in 2019, the Hyundai Venue has been one of the most successful nameplates in our SUV lineup, with over 700,000 units sold and a consistent position among the top three compact SUVs in India. Venue has played a pivotal role in strengthening Hyundai's SUV leadership and shaping our identity as a progressive and customer-centric brand. Preferred by young, aspirational working professionals who seek performance, Hyundai Venue has become a symbol of dynamic urban mobility and spirited individuality. With the launch of the all-new Hyundai Venue and Venue N Line, we are taking this success story to the next level. The new Hyundai Venue embodies disruptive design, advanced technology, superior safety and exhilarating performance, setting new benchmarks in the compact SUV segment. It also marks a proud moment for Hyundai Motor India, as the all-new Hyundai Venue will now be exclusively manufactured in India for global markets a true testament to the 'Make in India for the World' vision and the growing role of HMIL in Hyundai Motor Company's global strategy," said Garg.