Volkswagen Virtus Outsells The Hyundai Verna, Skoda Slavia In July 2024

As of July 2024, the Indian compact sedan market has witnessed a significant shift, with Volkswagen Virtus emerging as the best-selling model in the category. While most competitors have reported declining sales, Virtus has not only maintained its performance but has also seen a marginal increase in sales compared to the previous year.

Volkswagen's Virtus has solidified its position as the leader in the compact sedan market with year-to-date (YTD) wholesale numbers reaching 11,572 units by July 2024. This represents a modest yet noteworthy growth of 1.6 per cent compared to the 11,395 units sold during the same period in 2023.

Hyundai’s Verna, traditionally a strong player in this segment, has seen a significant decline in sales. With 11,364 units sold YTD as of July 2024, the Verna is down by a staggering 41.2 per cent from the 19,344 units recorded in the same period last year. This drop comes as a surprise, especially considering the model received a comprehensive facelift earlier this year, which was expected to boost its appeal.

The Honda City is also experiencing a tough year. With only 7,117 units sold YTD July 2024, the City has seen a 45.8 per cent drop from the 13,122 units sold in the same period last year. Industry experts believe that while the City still enjoys a loyal customer base, the growing popularity of SUVs and the stiff competition within the compact sedan segment has significantly impacted its sales.

The Skoda Slavia, which made a strong entry into the market in 2023, has not been able to sustain its initial momentum. YTD sales for 2024 stand at 8,443 units, a 22.1 per cent decrease from the 10,835 units sold during the same period last year. While the Slavia was initially lauded for its European styling and build quality, it appears that sustaining growth in a competitive market has been challenging.

The Slavia’s dip in sales may also be attributed to the brand’s limited dealership network compared to rivals like Hyundai and Honda, which could have affected its reach, particularly in tier-2 and tier-3 cities.

The Maruti Suzuki Ciaz, once a strong contender in the compact sedan segment, has seen the sharpest decline in sales. With only 4,206 units sold YTD July 2024, the Ciaz has witnessed a 41.5 per cent drop from the 7,193 units recorded during the same period last year. The Ciaz’s struggle is indicative of a broader trend where Maruti Suzuki, traditionally known for its dominance in smaller segments, is finding it difficult to keep pace with the evolving preferences in the compact sedan market.

The overall decline in C-segment sedan sales for most models, except the Virtus, can be attributed to the growing preference for SUVs in the Indian market. SUVs, with their higher ground clearance, road presence, and perceived better value, have eaten into the sales of traditional sedans. This shift is not unique to India and is being observed globally, where consumers are increasingly favouring SUVs over sedans.