Lower Hatchback – Is revival in sight?
This article is part of a thought leadership series by the Ipsos Auto sector expert group. This team of experts in the automotive sector join forces to share their unique perspectives and insights about the latest trends, innovations, and happenings in the auto industry. The intent is to keep our clients informed and up-to-date through the lens of research.
The popularity of lower hatchbacks (LHBs) in India is waning as consumers increasingly favour SUVs. This shift can be attributed to several factors, including a narrowing price gap between LHBs and entry-level SUVs, attractive financing options for SUVs, and a perception that SUVs offer greater safety and space.
However, there are glimmers of hope for a potential LHB (lower hatchbacks) revival. Factors such as worsening urban congestion, rising car prices, and a growing car enthusiast culture could reignite interest in smaller, more affordable vehicles like LHBs.
New demographics, such as women and empty nesters, might find LHBs well-suited to their needs. The fate of the LHB segment rests on the ability of car manufacturers to innovate and cater to these evolving market dynamics.
