“Most buyers of this segment have a home loan already running and the rising interest rates meant a rise in their home EMIs. This reduced their disposable income and their ability to go in for a car loan. Also, since most models in the segment are petrol vehicles, many of the customers could not muster the courage to go for a new car as monthly fuel bills would be inflated due to the near-recurring rise in petrol prices,” says an Industry Analyst, as quoted by TOI.

"Once the interest rates come down and petrol prices stabilize, this segment will again grow as the potential here is very high due to under-penetration of cars. Also, with a gradual increase in diesel options (Chevy Beat last year and Nano expected this year); the segment will get a new lease of life. It will bounce back and perhaps strongly," says an analyst with a brokerage firm.

“Another reason behind the success of the SUVs is that the number of offerings in this segment is rising exponentially," an analyst says. "The SUV segment has witnessed a fantastic growth rate in India over the last few years and holds the maximum potential in terms of demand," says Abdul Majeed, who tracks the auto industry at PricewaterhouseCoopers India.