India’s SUV boom presents a complex set of challenges
South Australia is considering a law that would require larger garages in residences to accommodate the increasing number of Sports Utility Vehicles (SUV). While this may help with parking congestion, urban planning experts argue it would deepen inequality and raise housing costs and rents. This debate and many more such questions are relevant for India as well, where the SUV boom has brought similar challenges.
An SUV blends features of both passenger cars and off-road vehicles. These vehicles are designed to be versatile, with higher ground clearance, four-wheel drive (4WD) or all-wheel drive (AWD), spacious interiors and towing capabilities. Originally developed for military use in the 1940s, SUVs have evolved into a popular choice for civilian families, available in various sizes such as subcompact, compact, midsize and full-size.
In India, the SUV market has exploded in recent years. Valued at $8.6 billion in 2022, it is expected to grow to $10.2 billion by 2032, with a compound annual growth rate of 2 per cent. SUVs now account for 57 per cent of India’s passenger vehicle market, with 1.18 million units sold in 2023 alone, marking a 21 per cent increase year-over-year.
Good for consumers, bad for cities
While SUVs offer comfort and versatility for consumers, they are causing significant challenges for urban infrastructure. In cities like Delhi, Mumbai and Bengaluru, the growing number of larger vehicles is overwhelming public parking and narrow streets. Urban areas originally designed for smaller cars are now congested with SUVs, making parking increasingly competitive and traffic more chaotic.
SUVs also contribute to environmental concerns. These vehicles typically consume more fuel and have a higher carbon footprint than smaller cars. As India struggles with air pollution and a dependence on fossil fuels, the increasing demand for fuel-inefficient SUVs only exacerbates the problem.
Although SUVs are marketed as safer for their occupants due to their size and elevated driving position, their larger mass and higher ground clearance can be dangerous to others on the road. Research has shown that pedestrians struck by SUVs are more likely to suffer fatal injuries compared to those hit by smaller cars.
The higher bumper height of SUVs often results in serious head and chest injuries to pedestrians, while smaller vehicles tend to impact lower body areas, offering a better chance of survival.
Moreover, when SUVs collide with smaller vehicles, the damage is often more severe. The greater size and weight of SUVs can cause catastrophic damage to smaller cars, leading to higher rates of injury and fatalities among occupants. In India’s already hazardous traffic environment, the increasing presence of large vehicles is adding to the risk of deadly accidents.
Tax evasion & policy loopholes
In addition to safety and infrastructure concerns, tax evasion related to SUVs is becoming a significant issue. According to the Goods and Services Tax (GST) council, a car qualifies as an SUV if it meets specific criteria, such as an engine capacity exceeding 1,500 cc, a length of more than 4,000 mm and a ground clearance of over 170 mm. However, some automakers and buyers are exploiting loopholes by classifying vehicles that don't meet all the requirements as SUVs, thus benefiting from lower tax rates.
This misclassification results in lost revenue for the government and undermines the effectiveness of the tax system. To combat this, stricter regulations and better enforcement of classification rules are necessary to prevent further tax evasion.
As SUVs become more prevalent, urban planning must evolve to address their impact on cities. The challenge is not simply about creating more space for larger vehicles but ensuring that cities remain liveable, sustainable, and safe.
A holistic approach should include investing in public transportation, promoting electric vehicles (EV) and improving pedestrian infrastructure. Additionally, public education campaigns can raise awareness about the environmental and safety concerns associated with SUVs, encouraging consumers to consider more sustainable alternatives.
The future of SUVs in India will likely depend on a combination of consumer demand, government policies, and environmental factors. While SUVs will continue to dominate the market in the short term, there is a growing push for cleaner, greener vehicles. The rise of EVs, along with stricter emissions standards, could eventually shift consumer preferences toward electric SUVs that offer the same utility without the environmental drawbacks.
In the coming years, it’s likely that India will see more electric SUVs enter the market, aligning consumer demand for spacious, high-performance vehicles with the need for sustainability. This shift will be crucial for reducing pollution and mitigating the adverse effects of rising SUV ownership.
India’s SUV boom presents a complex set of challenges, from urban congestion and safety risks to environmental degradation and tax evasion. Addressing these issues requires a balanced approach, combining smarter urban planning, stricter regulations, and incentives for cleaner vehicles. As the market for SUVs continues to grow, the country must find ways to balance consumer demand with the pressing need for sustainable development and road safety. How India navigates this dilemma will shape the future of urban mobility and environmental health in the years to come.