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. 

Mumbai-based automotive major Mahindra Group has rejigged its top leadership team to further strengthen the company’s market position.

The company has announced that Hemant Sikka, currently President of Farm Equipment Sector will take over the role of MD & CEO of Mahindra Logistics. He will succeed Ram Swaminathan who has stepped down to pursue other professional interests.

Furthermore, Veejay Nakra, currently President Automotive Division, has been appointed the President for Farm Equipment Business (FEB), which is among Mahindra’s large and profitable businesses with a ROCE of over 60 percent. The company sees huge opportunity to further grow the business and expand globally. He will continue to report to Rajesh Jejurikar, Executive Director & CEO, Auto & Farm Sector, Mahindra & Mahindra .

In addition, R Velusamy, currently, President Automotive Technology and Product Development, will take on the role of President of the Automotive Business (AB). He will be tasked to prepare the Automotive Business with technology innovation and lead opportunities for growth in domestic as well as global markets.

Mahindra has announced that it will now integrate the SUV and LCV (less than 3.5 tonne) business under one leadership to make the business more agile and collaborative, from engineering products to faster time to market. He will also report to Jejurikar.

Dr Anish Shah, Group CEO & Managing Director, Mahindra & Mahindra, said, “These leadership changes ensure that we have strong, proven leaders at the helm of our key businesses. Their experience will enable us to drive significant growth and create greater value for our customers and shareholders. We thank Ram for his contributions to the company, and wish Hemant, Veejay, and Velu the very best for the journey ahead.”

Hyundai Motor India, a leading manufacturer of passenger vehicles in the country, has has announced that every second vehicle it sold in India came with a sunroof.

The company shared that in FY2025, 53.2 percent of the Hyundai vehicles sold in the country was equipped with sunroof, what’s more the share of SUVs also increased to 68.5 percent from the earlier 63.2 percent a year ago.

At present, sunroof is offered as an optional feature in 12 out of 14 models in the Hyundai Motor India portfolio, which includes the Exter, Venue, Creta, Alcazar, Tucson Verna, Aura, Grand i10 NIOS, i20 and the Ioniq 5.

On the other hand, the demand for ADAS-equipped models grew to 14.3 percent from 6.7 percent a year ago.

Tarun Garg, Whole-Time Director and Chief Operating Officer, Hyundai Motor India, said, “FY2024-25 has been a landmark year for Hyundai Motor India. The fact that two out of every third vehicle sold by us in India was an SUV is a testament to our deep understanding of Indian customers and our commitment to delivering innovation, safety and style. The doubling of ADAS variant contribution and growing popularity of sunroof-equipped models reflects the rising aspirations of our customers and their readiness to embrace global technologies. We shall continue to march forward with a focus on customer delight, offering products that are future-ready, feature-rich, and engineered for India.”

German luxury car brand Mercedes-Benz India has expanded its footprint in the southern market with the inauguration of three new state-of-the-art facilities across Bengaluru and Hyderabad, reinforcing its customer-centric ‘Go to Customer’ strategy.

In Bengaluru, the luxury carmaker opened a sprawling 2S (Sales & Service) facility with a Delivery Bay by long-standing partner Sundaram Motors on International Airport Road. The 47,000 sqft facility, built to Mercedes-Benz’s global MAR20X luxury retail standards, features 10 dedicated service bays, a Premium Aero Hub and a Mercedes Cafe. It also offers fast EV charging and quick repair zones, enhancing convenience and sustainability.

Hyderabad saw the addition of two new 2S facilities. Mahavir Motors inaugurated a 39,000 sqft outlet in a high-net-worth residential area near the city’s growing IT corridor. The facility, equipped with 19 service bays, combines digital interfaces with personalised service zones and eco-friendly features.

Landmark Cars also launched a new 12,000 sqft service centre in Hyderabad with six service bays. The facility offers specialised vehicle servicing, body paint work and Premier Express service for priority customers.

These openings mark a significant investment in customer engagement and service infrastructure in key southern metros, aligning with rising aspirations and demand for luxury vehicles in India.

Santosh Iyer, MD & CEO, Mercedes-Benz India, said, “We are delighted to inaugurate 3 state-of-the-art luxury facilities in Bengaluru and Hyderabad, reaffirming our commitment to delivering the best customer experience and deepening our presence in these key markets. These modern facilities reflect Mercedes-Benz’s vision of offering a world-class luxury retail experience, backed by digital innovation, modern luxury design and personalised customer consultation. We continue to invest in our luxury retail experience, with sharp focus on elevating customer experiences by creating new standards in luxury automotive retail. We are creating desire for the brand not only in emerging markets, but also in key metropolises like Bengaluru and Hyderabad, where Mercedes-Benz has a strong brand presence.”

Czech automaker Skoda Auto India, which completes its silver jubilee in India, has launched its all-new Kodiaq premium SUV at prices starting INR 4.68 million.

Powered by a 2.0 TSI engine, the Kodiaq produces 150kW and 320Nm of torque, which is distributed to both axles through a seven-speed dual-clutch DSG automatic. Based on the MQB37 platform, the Kodiaq SUV is available in the Sportline and Selection L&K in seven-seat configurations. The company shared that the SUV is being assembled in India at the brand’s facility in Chhatrapati Sambhaji Nagar. The Kodiaq comes with a claimed fuel efficiency of 14.86 kmpl by ARAI.

The all-new Skoda Kodiaq grows 59mm longer than its predecessor, now measuring 4,758mm in length, 1,864mm in width and 1,679mm in height, with a wheelbase of 2,791mm. Its ground clearance increases to 155mm when fully laden. It continues to retain its three-row layout yet manages to offer 281 litres of cargo space with all seats upright, 786 litres with the third row folded, and 1,976 litres with both rear rows stowed. Externally, the SUV boasts a bold redesign, featuring LED Beam Crystallinium headlamps with a Welcome Effect and a front grille integrated with a horizontal light strip.

A red strip connecting the tail lamps accentuates its width, and six exterior colour options are available, including Moon White and Velvet Red, with exclusive Bronx Gold for the L&K and Steel Grey for the Sportline.

On the inside, the Kodiaq elevates luxury with two distinct themes: a sporty all-black interior for the Sportline and premium Cognac leather upholstery for the L&K trim. A 32.77-cm infotainment system and Smart Dials with tactile controls streamline access to HVAC, audio and drive modes. Ergonomic upgrades include a steering wheel-mounted gear selector and a rear tablet holder. The Ergo front seats feature advanced pneumatic massage, while an acoustic package and noise-reducing windows ensure a tranquil cabin.

The Kodiaq is equipped with nine airbags, complemented by a sliding panoramic sunroof and a 725W Canton sound system with 13 speakers.

Skoda Auto India is also offering a standard warranty of five-year/125,000km (whichever earlier), along with a 10-year complimentary Road-Side Assistance on offer.

Petr Janeba, Brand Director, Skoda Auto India, said, “In March, we recorded our biggest ever monthly sales in India, driven by the Kylaq launch, and supported by the Kushaq and Slavia. This is one of many new records we aim to set this year. In line with our product offensive strategy, the launch of the all-new Kodiaq showcases the other end of our product spectrum with Škoda’s luxury and technology prowess. The Kodiaq has now grown to be an important legacy name for us like the Octavia and Superb. The Kodiaq offers the ultimate luxury and handling for city roads and also packs in versatile all-terrain capabilities.”