UPDATE: India’s passenger vehicle market has just reported a remarkable surge, with 2025 sales hitting approximately 45.8 lakh units, reflecting a 6% increase year-on-year. The standout performers are SUVs, which have now claimed an impressive 55.4% market share, solidifying their dominance in the automotive landscape.
This surge comes despite a limited number of new vehicle launches within the year, with only 27 new models introduced, of which a mere single sedan was unveiled. The overwhelming majority of new launches were SUVs, underscoring a significant shift in consumer preferences. Notably, over 40% of these models were electric vehicles, highlighting a growing trend towards sustainable options.
The competition remains fierce among existing sedan models, with the Maruti Suzuki Dzire making headlines as it emerges as India’s best-selling car in 2025. This marks a historic moment, as it is the first sedan to top annual sales since 2020. Meanwhile, sedans like the Hyundai Verna and Tata Tigor managed to see slight gains, with market share rising from 8% to 8.6% despite the minimal new offerings.
As buyers continue to favor the height and road presence of SUVs, hatchbacks are losing ground, with their market share plummeting from 25% to 22.8%. The Tata Altroz facelift was one of the few new introductions in this segment. The decline in hatchback sales persists, compounded by price sensitivity among entry-level models like the Alto and S-Presso.
In a notable trend, the demand for SUVs appears to be stabilizing, suggesting a potential shift that may allow other vehicle styles to regain some market share. The Skoda Octavia RS was the sole new sedan launch, sold in limited quantities, yet existing models have helped maintain overall sedan presence.
The sales figures highlight a transformative year for India’s automotive market, with SUV dominance reshaping consumer choices. Buyers are not just looking for aesthetic appeal; performance also plays a crucial role in decision-making, as seen with turbo-petrol variants of popular sedans.
With the automotive sector evolving rapidly, industry analysts are keeping a close watch on these trends. As more consumers gravitate towards SUVs, the implications for manufacturers and the market dynamics will be critical to observe in the coming months.
Stay tuned for more updates as this story develops, and explore the latest trends in the automotive industry.
