BREAKING: India’s passenger vehicle market is experiencing a dramatic surge as sales in 2025 hit approximately 45.8 lakh units, marking a substantial 6% year-on-year growth. This growth is spearheaded by SUVs, which have now crossed a remarkable 55% market share.
Authorities confirm that despite a limited number of new vehicle launches, the SUV segment continues to dominate. With only one sedan introduced among 27 new car models this year, SUVs accounted for an overwhelming majority of launches, including a notable rise in electric vehicles, which made up more than 40% of new offerings.
The Maruti Suzuki Dzire emerged as the best-selling car in India for 2025, becoming the first sedan to top annual sales since 2020. This achievement highlights a significant shift in consumer preferences as buyers increasingly gravitate toward compact SUVs for their height and road presence.
Sales for sedans, including popular models like the Honda Amaze, Hyundai Verna, and Volkswagen Virtus, have shown slight improvement, rising from 8% in 2024 to 8.6% in 2025. Experts attribute this increase to consistent demand for existing models, even with minimal new launches. However, the hatchback segment continues to decline, dropping from 25% to 22.8% market share as buyers shift preference toward compact SUVs.
Despite a recent GST cut aimed at boosting entry-level hatchbacks, sales for models like the Maruti Alto and S-Presso remain sluggish. The limited new activity in this segment has further complicated growth prospects.
With consumer demand stabilizing, the future trajectory of SUV sales may shift, allowing other vehicle categories to reclaim some market share. As the automotive landscape evolves, industry watchers will be keen to see how these trends develop in the coming months.
Stay tuned for more updates as the situation develops and the automotive market continues to shift in response to consumer preferences.
