SUVs now account for half of all sales in India

9 Oct 2023 , 09:25 AM

SUV sales in India now account for 50% of all passenger car sales, more than doubling in only five years. Small cars, which were formerly widely popular, have suffered as a result of consumers’ preference for larger, more feature-rich vehicles.

SUV sales peaked in September at up to 52% of the 363,733 passenger vehicles sold—a record for a single month—increasing their market share from around 43.6% in September 2022.

An increasing number of young, ambitious buyers in India are moving away from hatchbacks and towards SUVs due to the broad variety of models available and their greater visibility on the road relative to tiny cars, which brand experts claim indicates value. 

A few years ago, sedans with their long bodies represented luxury. But once automakers introduced more compact versions in the segment at competitive prices and added comfy strappings for city driving, demand for SUVs skyrocketed.

SUV sales have increased from 41.5% in H1FY23 to 48.3% of all vehicle sales in the first half of the current fiscal year. Hatchbacks’ market share decreased from 35.1% in the same time of the previous fiscal year to 30% in H1FY24. 

Despite the introduction of numerous new models, including the Hyundai Verna, Volkswagen Virtus, and Skoda Slavia, the percentage of sedans also decreased, from 10.3% in the first half of the fiscal year to 9.3% in the current period.

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