Passenger Vehicle Sales India

Over the last five years, the passenger car sector in India underwent dramatic shifts as consumer preferences have changed in response to shifting economic conditions, technological advancements, and lifestyle aspirations.

Dominance of SUVs on the Roads of India

Sales of SUVs in India's passenger vehicles market have grown substantially, from 23% in 2019 to 50% through 2024. The industry expansion is explained by the SUV's capacity to appeal to urban as well as semi-urban consumers by fusing performance, style, and usefulness.

Compact SUVs continue to dominate the market, with companies like Hyundai and Tata Motors holding a steady 58% share in 2019 and 57% in 2024. The Hyundai Creta and Kia Seltos are driving growth in the mid-sized SUV market, while Toyota's Urban Cruiser Hyryder is adding competition.

Mahindra has solidified its leadership in the large SUV segment, extending its share from 52% in 2019 to 61% in 2024, supported by models like the Scorpio and XUV700. Large SUVs cater to luxury and rugged performance buyers, ensuring steady growth in India.

Decline of Hatchbacks and Sedans in Indian Households

Hyundai's Verna and Volkswagen's Virtus have increased their market share. However, the total decline in the market is primarily driven by consumer preference for SUVs that offer similar features at comparable prices.

Hatchback models have experienced a significant decrease in market share, dropping from 47% in 2019 to 28% in 2024. Meanwhile, Maruti Suzuki has surged its market share from 63% to 70%, largely due to popular models like Alto and Swift. Sedan versions have seen a dramatic decline, halving its market share from 19% in 2019 to just 9% in 2024.

Market Performance of Leading Automakers in India

• Maruti Suzuki

Maruti Suzuki remains the market leader in India and has seen its share drop from 52% in 2019 to 43% in 2024. Despite a strengthening hatchback market, it faces challenges in the SUV market, where its share has declined from 26% to 22%.

The company is addressing this gap through models like the Brezza and Grand Vitara but lags behind competitors. With 3,250+ sales and 4,560+ service outlets, Maruti Suzuki is extending its SUV lineup and EV segment for future growth.

• Hyundai

Hyundai keeps its market share steady at 15% in 2024, a little less than its 16% share in 2019. From 16% to 19%, the business has increased its SUV portfolio, which now includes the Venue, Creta, and Alcazar.

The Creta is the flagship vehicle in the brand's mid-sized SUV strategy. Hyundai is ideally positioned for future expansion, including hybrid and electric vehicles, with 1,350+ sales and 1,500+ service locations.

• Tata Motors

Tata Motors, a pioneer in the auto industry of India, has significantly increased its market share from 6% in 2019 to 11% in 2024, due to its robust offerings in the compact SUV segment. Models like Nexon accounted for 23% of the market in 2024, up from 12% in 2019.

Tata's focus on safety and technology has also boosted its SUV share from 9% to 15%. With 1,400+ sales and 850+ service outlets, Tata caters to evolving consumer demands.

• Mahindra

Mahindra, a renowned SUV maker, has raised its market share from 7% to 11% and will likely dominate the big SUV class with 61% in 2024. However, because of more competition, its market share in the small SUV segment fell to 20%. With more than 600 service locations and 1,250 sales, Mahindra's emphasis on tough SUVs and electrified models is anticipated to fuel further expansion.

• Kia

Kia's entry into India’s market has been transformative. With a 6% market share in 2024, the company quickly established itself as a key player, particularly in the SUV segment, where it holds 9% of the market. Models like the Seltos and Sonet have been instrumental in Kia's rapid accent, offering competitive features at attractive price points.

• Toyota

Toyota has maintained a niche presence, increasing its market share from 4% to 6% between 2019 and 2024. The brand has focused on hybrid and premium offerings, with models like the Innova Hycross and Urban Cruiser Hyryder contributing to its growth in the mid-sized SUV and large SUV segments.

• Honda

Honda has struggled to keep pace with the evolving market, with its total market share plummeting from 6% in 2019 to 2% in 2024. The brand's reliance on the sedan segment, which has been in decline, and a lack of competitive offerings in the SUV space have been key factors behind its diminishing presence.

Sustainability and Government Support to Create Novel Prospects in India

Support from governments and customer interest in sustainable transportation is set to provide key players in the India electric vehicles market with new growth avenues. Automakers can attract a wider audience by investing in electric SUVs and hatchbacks, providing innovative financing solutions, and focusing on unexplored cities. SUVs are the main growth engine and hence manufacturers should concentrate on producing small and medium-sized SUVs.

Passenger Vehicles to Witness Skyrocketing Sales across India

Consumer demand for passenger cars in India is changing rapidly, and SUVs are becoming the consumers' preferred vehicle. Even if a few car segments, such as sedans and hatchbacks, are in decline, these nevertheless provide chances for focused innovation. Automakers in India may successfully negotiate this changing environment and maintain their place in one of the most dynamic automotive marketplaces in the world by concentrating on SUVs, electrification, and cutting-edge features.