UPDATE: SUVs have dominated India’s passenger vehicle market in 2025, capturing a remarkable 55.4 percent market share, marking a significant surge in sales. The latest data reveals that total passenger vehicle sales reached approximately 45.8 lakh units, reflecting an impressive year-on-year growth of nearly 6 percent.
Despite a limited number of new launches—only 27 new models introduced this year, with just one being a sedan—SUVs continued to lead the charge. The significant growth of SUVs, which rose from 54 percent market share in 2024, indicates a strong consumer preference for height and road presence.
As of now, the Maruti Suzuki Dzire has emerged as India’s best-selling car in 2025, becoming the first sedan to top the annual sales chart since 2020. Meanwhile, sedans saw a slight increase in market share, moving from 8 percent in 2024 to 8.6 percent in 2025, despite the dearth of new models. The Skoda Octavia RS was the only new sedan introduced, though sold in limited quantities.
Hatchbacks, however, faced a decline, with their market share plummeting from 25 percent to 22.8 percent as buyers increasingly gravitated towards compact SUVs. The Tata Altroz facelift was the only significant launch in this segment, highlighting the ongoing shift in consumer preferences.
While existing compact and mid-size vehicles like the Hyundai Aura and Tata Tigor experienced steady demand, the overall market dynamics shifted towards SUVs and electric vehicles. Electric models accounted for over 40 percent of all new launches, underscoring the growing interest in sustainable mobility solutions.
This evolving landscape suggests that while SUV demand remains robust, its growth rate is beginning to stabilize. Experts indicate that this could allow other body styles to maintain their market presence rather than consistently losing ground.
Looking ahead, the automotive industry in India will need to monitor these trends closely, especially as consumer preferences continue to evolve in response to economic factors and new vehicle offerings. The rise of SUVs could lead to more innovative designs and technology as manufacturers seek to capture this lucrative market segment.
This development is crucial for stakeholders in the automotive industry, from manufacturers to consumers, as it shapes the future of vehicle design and technology in India. Stay tuned for more updates as this story develops.
