Car Segmenatation in India

The Indian car market has enjoyed a robust growth rate in the past and at present is the sixth biggest passenger and commercial vehicle producer in the world. In the fiscal year 2011 – 2012 almost three million passenger cars were sold in the sub-continent.

Naturally proper segmentation of the Indian cars is a dire necessity. This segmentation allows for automobile manufacturers to plan and position their models for succeeding in the targeted consumer section precisely. Also a proper segmentation of the different models of cars is required to levy proper taxes by government of India on them.

There are different parameters based on which the cars available in the Indian market are categorized. The technically defining parameters are based on the length of the car, engine capacity, features offered, seating capacity and structure of the car etc.

SIAM or Society of Indian Automobile Manufacturers divides the Indian passenger vehicles in the segments A1, A2, A3, A4, A5, A6, B1, B2 and SUV. The classification is done solely based on the length of the automobiles. The details of the segments are mentioned as below………………..

Car Segment Length of the car/Model type Car model belonging to the segment
A1 Up to 3400mm Nano
A2 3401 to 4000mm Alto, i10, Zen, Wagon R
A3 4001 to 4500mm Manza, Logan, Dzire, City
A4 4501 to 4700mm Corolla, Octavia, Optra
A5 4701 to 5000mm Accord, Camry, Sonata
A6 More than 5000 mm Mercedes S class
B1 Vans Versa, Omni
B2 MUV/MPV Sumo, Innova
SUV SUV Vitara, CRV

However, though it is simple and easy to divide the passenger cars based on their length, it is not at all practical. The price of a car isn’t determined by length only. A shorter car might be priced higher than a lengthier model. Also the features and configuration of the car models doesn’t depend on the car length.

Hence, to avoid all the confusions the Indian passenger cars are popularly divided into the below mentioned segments according to the following properties.

Car Segment Distinguishing feature of the cars in this segment Car model belonging to the segment
A Cars priced below Rs. 3.5 Lakh Alto, Spark, Nano, Eon
A1 Hatchback priced lower than Rs. 6 Lakh Santro, Indica, Beat
A2 Hatchback priced between Rs. 6 to 7.5 Lakh Ritz, i10, i20, Swift, Figo
B1 Vans Versa, Omni
B2 MUV/MPV Sumo, Innova
C1 Sedan models priced below Rs. 8 Lakh Indigo, Fiesta, Sunny
C2 Sedan models priced between Rs. 8 to 9.5 Lakh Verna, Manza, Linea
D1 Premium Sedan models priced below Rs. 15 Lakh Fluence, Corolla
D2 Luxury Sedan models priced below Rs. 25 Lakh Sonata, Camry, Kizashi
SUV SUV Vitara, CRV

Body type is the other most popular factor for classification of passenger vehicles. This segmentation process is not only limited to the Indian sub-continent, this is a common method that enjoys popularity throughout the world.

The popular segments according to the car body types are mentioned as below.

  • Mini
  • Compact
  • hatchback
  • mid size cars
  • Sedan
  • executive cars
  • premium cars
  • luxury cars
  • super luxury cars
  • van
  • utility vehicles
  • MUV/MPV
  • SUV
  • convertibles
  • sports cars
  • super cars
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