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. 

 

VinFast Expands Global Aftersales Network With 29 New Partnerships

Vinfast

Vietnamese automotive company VinFast has announced the signing of Memoranda of Understanding (MOUs) with 29 aftersales partners during its Global Business Conference held between 4 May and 10 May 2026.

The event gathered over 200 investors and partners from North America, Europe, the Middle East, India, Indonesia, the Philippines and Kazakhstan to discuss the company’s international service expansion.

The MoUs outline plans for international partners to establish electric vehicle (EV) service workshops that adhere to VinFast’s global standards. To maintain service quality, VinFast intends to provide standardised technician training, certification programmes and operating procedures. The company is also developing a parts supply network with a target of delivering common spare parts within 24 hours in major markets.

The automaker is building on its domestic aftersales foundation in Vietnam, where it operated nearly 400 workshops by the end of 2025. This contributed to a total global network of nearly 800 facilities at that time.

For 2026, the company aims to expand its global reach to more than 1,100 service workshops. This network will be implemented through several models, including – dealerships for retail customers, services for fleet and transportation business clients and partnerships with third-party local service workshops.

The expansion strategy includes specific support policies such as repair time commitments in Vietnam and the provision of replacement vehicles in international markets. VinFast also provides ongoing technical support, battery inspections and software updates for its customers.

Bui Viet Hung, Deputy CEO of Global Aftersales at VinFast, said, “Our goal is not simply to expand the network, but to build a customer-centric aftersales ecosystem that delivers an outstanding experience on a global scale. Through partnerships with experienced local operators and the application of VinFast’s global standards, we aim to provide aftersales services that are exceptional, responsive, and reliable”.

In addition to maintenance services, VinFast is collaborating with partners like V-Green to develop a global charging system. The company aims to establish more than 1.5 million charging ports worldwide to provide a comprehensive ownership experience for international EV users.

Tata Motors Targets Over 10% Growth In FY2027, EV’s To See Disinflationary Future

Tata Motors PV

Mumbai-headquartered automotive major Tata Motors is upbeat on FY2027. The company reported revenue of INR 3,355 billion, down 9 percent YoY in FY2026, as compared to INR 3,660 billion a year ago. The profit before tax saw a decline of 13 percent at INR 2,333 billion, as against INR 3,142 billion last year.

The impact was primarily on the back of several headwinds at Jaguar Land Rover, including cyber incidents, tariffs, China's luxury tax, VME pressures and adverse commodities. The Consolidated Net Debt stood at INR 307 billion, on account of adverse free cash flows primarily owing to production stoppages at JLR.

However, Tata Motors management is quite optimistic about transitioning into the new fiscal year. Shailesh Chandra, Managing Director & CEO, Tata Motors Passenger Vehicles, outlined a ‘stay the course’ philosophy backed by aggressive technological pivots. Despite macroeconomic volatility, the company is doubling down on its multi-powertrain strategy to insulate itself from global commodity shocks.

While FY2026 was a year of ‘outperformance’ (15 percent growth), Chandra has set a realistic yet ambitious floor for the mid-term.

"We are confident growth can be over 10 percent for FY2027. There is no question about changing the long-term plan. Unless there is a significant geopolitical impact on petrol and diesel prices that may have a 1-2 percent plus or minus effect on new car sales, we remain on track," Chandra stated.

Perhaps the most significant outlook provided was the expected reversal of the traditional cost structure. Chandra views the rising cost of Internal Combustion Engines (ICE) as an inevitability that will eventually make EVs the more profitable segment.

Interestingly, for Tata Motors’ alternative energy fuel mix (electric and CNG) now already accounts for 43 percent of passenger vehicle sales.

"ICE is going to be inflationary in the future," Chandra predicted. "Cost on the EV side has been disinflationary. If not equal, it will be better than ICE. We are not that concerned on profitability being impacted badly; there can be some pressure in the short-term, but it maybe for completely different reasons," he responded on the demand in the upcoming few months.

The automaker is also ramping up production to meet demand and expects to build on the strong momentum of H2 FY2026, and continue to deliver profitable and industry-beating growth in FY2027, supported by a robust demand pipeline, planned pipeline of new products and established multi-powertrain strategy.

By December 2026 or early CY2027, Tata Motors plans to enter the Flex-Fuel arena with at least one product to align with evolving government mandates.

"As far as Tata Motors is concerned, we are comfortable in terms of technology readiness," Chandra noted. "By end-December 2026 or early next year, we expect our first Flex-Fuel vehicle to be introduced. We are currently in discussion with the government through SIAM for E25 readiness."

Maruti Suzuki Crosses 3 Million Cumulative Rail Dispatches in Green Logistics Push

Maruti Suzuki Crosses 3 Million Cumulative Rail Dispatches in Green Logistics Push

Maruti Suzuki India Limited has crossed a new threshold in its environmental logistics strategy, having now sent more than three million vehicles across the country by rail. The carmaker views this cumulative figure as proof of its deepening commitment to reducing emissions through supply chain innovation.

The share of trains in the company’s outbound vehicle movement has grown from just five percent in the 2014-15 fiscal year to 26.5 percent in 2025-26. The journey from two million to three million rail dispatches took only 21 months, setting a company record for the fastest addition of one million units moved by train.

Two of Maruti Suzuki’s manufacturing hubs, at Hansalpur and Manesar, are equipped with in-plant railway sidings, a distinction held by no other passenger vehicle maker in India. These facilities were built under the national PM GatiShakti master plan. The Hansalpur siding became operational in March 2023 and received a virtual inauguration from Prime Minister Narendra Modi a year later. In February 2026, it earned global recognition as the first modal shift transport project registered under Verra’s carbon standards. The Manesar siding, the largest of its kind in the country, saw its first train flagged off in June 2025 by Union Minister Ashwini Vaishnaw and Haryana Chief Minister Nayab Singh Saini.

With a combined annual capacity of 750,000 vehicles, the two sidings feed a hub and spoke network covering more than 600 cities from 22 hubs. Popular models like the Swift, Brezza, Baleno, Grand Vitara and Ertiga, produced in Gurugram, Manesar and Gujarat, are moved through this system. Rail connectivity also extends to the ports of Mundra and Pipavav, supporting the company’s export shipments.

Hisashi Takeuchi, Managing Director & CEO, Maruti Suzuki, said, “Achieving three million cumulative vehicle dispatches through railways marks a significant milestone in Maruti Suzuki’s green logistics journey. Since 2014, our rail-based vehicle dispatches have increased ninefold in volume, now contributing 26.5 percent of the Company’s total vehicle dispatches. Maruti Suzuki has committed over INR 13,720 million towards dedicated green logistics infrastructure. This includes development of in-plant railway sidings at our Hansalpur and Manesar manufacturing facilities, rail yards setup at key logistics hubs, procurement of specialised automotive rakes and supporting multiple infrastructure upgrades.

 “We thank the Government of India for the visionary PM GatiShakti National Master Plan, which has created a strong enabling framework for integrated, multimodal logistics and has supported the industry’s transition towards efficient, rail-led and sustainable freight movement. Going forward, we aim to increase the share of rail-based vehicle dispatches to 35 percent by FY2030-31 and plan to establish an in-plant siding at our new Kharkhoda facility. This would further help reduce carbon footprint, lower fuel consumption and ease overall road congestion.”

Remembering Ferruccio Lamborghini

The 110th birthday of Ferruccio Lamborghini Cavaliere di Gran Croce OMRI, the famous Italian automobile designer and industrialist who created Lamborghini Trattori in 1948 and Automobili Lamborghini in 1963 was on 28 April 2026. The force behind the conceptualisation, design and development of some of the most iconic supercar models ever to come out of Italy, such as the Miura and Countach, Lamborghini was driven by an unceasing desire to improve and innovate. 
Born in Renazzo, a hamlet in the municipality of Cento (province of Ferrara), on 28 April 1916, Lamborghini – the eldest son of farmers Antonio and Evelina Lamborghini – was attracted to mechanics than to the land that his father harvested. At the very young age, he spent his afternoons in the farmstead workshop. 
Managing to get hired by the best mechanical workshop in Bologna, where he discovered the secrets of mechanics, Lamborghini was drafted and assigned to the 50th Mixed Maneuver Motor Fleet stationed in Rhodes at the outbreak of World War II.
He successfully repaired (and broke) vehicles belonging to the Italians, German and British. Founding his first company in Rhodes, a small mechanical repair shop, Lamborghini returned to Italy in 1946 and, taking advantage of incentives put in place to support the economic recovery, opened a machine shop in Cento to repair motor vehicles and build small utility vehicles. 
Observing the crisis suffered by local agriculture, he built inexpensive agricultural tractors within reach of small landowners, using the components of old military vehicles. The first was made from a Morris truck where he applied a fuel vaporiser of his own invention. He sold some eleven such machines, establishing himself as an entrepreneur.
Counted among the most important industrialists in Italy by 1963, Lamborghini decided to build the best grand touring cars in the world. An incident often told is that he complained to Enzo Ferrari about a broken clutch in his personal Ferrari. Ferrari reportedly told him: “Stick to making tractors and leave the sports cars to me.”
Determined to build a better car than his Ferrari 250GT, Lamborghini hired top talent, including former Ferrari engineer Giotto Bizzarrini, to design a new V12 engine, and Gian Paolo Dallara as technical director. The first prototype – the 350 GTV – was built in Sant’Agata Bolognese and shown at the 1963 Turin Motor Show. 
The refined production version – the 350 GT – debuted at the 1964 Geneva Motor Show. The Muira, launched in 1966, redefined the supercar segment like no other, establishing firmly Lamborghini and his car venture into the domain that Ferrari ruled. 
The emblem found on the bonnet of the Muira was a result of an exercise where Lamborghini contacted a well-known local graphic designer, Paolo Rambaldi, who asked him what personal characteristics he felt he possessed. “I’m tamugno (which translated from dialect means hard, strong, stubborn) like a bull,” was the reply. An emblem was born thus with a raging bull in it, popularly referred to as the world-famous logo of Automobili Lamborghini.
Retaining his spirit after he left this world on 20 February 1993, Automobili Lamborghini continues to make among the best and most desirable supercars today. They are made with his conviction that the best can still be improved and new avenues can be explored.