New Delhi: The country’s largest carmaker Maruti Suzuki India, largest automaker Tata Motors and Volkswagen’s Skoda Auto India plan to enter the crossover market, the fastest growing segment in the passenger vehicle market.

It is one detail that you may have missed out in a booming market where every carmaker seems to be reaching a new milestone every month, but clearly our big carmakers are alert even when they party. They can cross over in no time.

Tata Motors will roll out its Tata Aria, developed from the Xover concept, in the last quarter of 2010, while Maruti’s first crossover based on its R3 concept and Skoda Roomster will hit the Indian road next year, according to industry executives familiar with company plans.

Crossovers, or multi-utility vehicles, are positioned between larger sports utility vehicles and smaller hatchbacks, mixing the silky comforts of a car with the rough and tough built of an offroader.

“As the market shifts towards compact cars, MUVs are gaining ground with their higher utility and lower cost of operations,” says Sundeep Singh, deputy MD (marketing) at Toyota Kirloskar Motors, maker of Innova crossover.

The segment, dominated by Innova and Mahidra & Mahindra’s Xylo, grew 41% to 1.5 lakh vehicles, or close to 10% of the country’s passenger vehicle market, last financial year.

Industry analysts point to increased incomes, higher aspiration levels, more young buyers and multi-purpose utility as factors boosting crossovers. Also, crossovers are priced lower, Rs 6-11 lakh, than SUVs coming at Rs 8-25 lakh and more.

“There is a complete transformation with MUVs generating a huge demand off late with changes in urban demography and the emergence of rural markets,” says Anjali Jajoo, auto analyst at Mumbai-based Angel Broking. “Its growth is also helped by the buoyant economy as a high number of these vehicles are used for commercial operations.”

Automakers expect the demand to soar, driven by nucleus facilities looking at bigger crossover vehicles that can change into outstation wagons.

All three new vehicles — Maruti’s R3 concept, Tata Aria, built on the new Xover platform, and Skoda’s Roomster MUV, based on its Fabia hatchback platform — were showcased at the Delhi Auto Expo earlier this year.

Tata Aria, which will take off later this year, may have a ready market as both Toyota and M&M are struggling to meet the demand for Innova and Xylo.

“We are facing huge customers discontent as waiting for the Innova go up to three months in many regions now,” says Toyota’s Sundeep Singh. The company plans to increase Innova production to meet rising demand, he adds. Mahindra Xylo, priced at the entry level, also enjoys a two-month waiting for delivery. Tata Aria will be bigger and roomier than both. It is 4.85-meter long and will have flexible seating that can comfortably accommodate seven adults and offer ample cargo area.

Sources in the component industry say that Volkswagen also may enter the crossover segment in the country with a vehicle built on the Suzuki SX4 platform and that the unnamed vehicle could hit the market next year.
“Copyright © 2010, Bennett, Coleman & Co. Ltd. All Rights Reserved”