Compact and mid-size dominate SUV sales in India as consumer preferences shift
India’s automobile market is undergoing a dramatic transformation, with SUVs emerging as the dominant force in passenger vehicle sales. In May 2025, Maruti Suzuki and Tata Motors reported a combined 30% year-on-year growth in SUV sales in India, driven by strong demand for compact and mid-size models.
The Maruti Grand Vitara, launched with both mild-hybrid and strong-hybrid variants, has become a top seller in its segment. Its fuel efficiency, spacious cabin, and competitive pricing have made it a favorite among urban and semi-urban buyers.
Meanwhile, Tata Motors continues to ride high on the success of the Nexon and Punch EV, both of which have received updates in design, safety, and connected features.
SUVs now account for over 45% of total passenger vehicle sales in India, up from 34% just two years ago. This shift is attributed to changing consumer preferences, with buyers increasingly valuing higher ground clearance, better road presence, and enhanced safety features. The trend is particularly pronounced in Tier 2 and Tier 3 cities, where road conditions and lifestyle needs favor SUV ownership.
To capitalize on this momentum, Tata Motors has announced plans to launch two new electric SUVs by early 2026. These models will be built on the company’s Gen-2 EV architecture, promising improved range, faster charging, and advanced driver-assistance systems (ADAS). Maruti Suzuki, on the other hand, is doubling down on hybrid technology, aiming to offer fuel-efficient alternatives without the infrastructure challenges of full EVs.
The SUV boom is also reshaping dealership strategies, with more floor space and marketing budgets being allocated to SUV models. Financing options and subscription models are being tailored to attract younger buyers who are entering the market with a preference for feature-rich, tech-savvy vehicles.
As India’s automotive landscape evolves, SUVs are no longer a niche—they are the new mainstream. And with Maruti and Tata leading the charge, the segment is poised for even greater growth in the years ahead.
