'In the January-August period, the share of hatchback in the overall PV industry sales was about 22.4 per cent. In the September-October period, the share of hatchbacks has come down to 20.4 per cent. In just October, their share was just 20 per cent. This is simple wholesale data from industry body SIAM.'
Since the Indian government reduced GST on small cars on September 22, the small car segment's share in Maruti's overall sales has risen to more than 25 per cent, up from 16.6 per cent earlier in FY26.
Despite its sub-4m footprint, the Gravite offers impressive cabin space, three usable rows, and practical storage solutions making it ideal for budget-conscious families, says Somnath Chatterjee.
In 2025, the Maruti Suzuki Dzire has emerged as India's top-selling car, while sport utility vehicles continue to rule the broader passenger vehicle market, capturing almost 55 per cent of the segment.
Data from used-car platforms suggest that buyer preferences have remained broadly stable post-GST, with SUVs retaining their dominance even as price adjustments played out across segments.
It is after seven years that a sedan has claimed the top spot -- Dzire had last achieved the No.1 position in 2018.
In absolute terms, both types of cars must cut emissions by about 28-29 g/km. But in percentage terms, the lighter 900-kg car must reduce emissions by 27 per cent, while the 1,500-kg car needs a 22 per cent cut. And the target becomes progressively stringent for both -- but, once again, the tightening is sharper for the 900-kg car than for the 1500-kg car.
Indian automakers are reviving legacy nameplates to leverage brand recall and stand out in a crowded market, as classic badges like Sierra, Safari, Baleno and Scorpio return to attract buyers.
In October, small car wholesales of the auto industry -- excluding Tata Motors -- went up by 8.4 per cent Y-o-Y to 116,601 units, the data showed. However, the utility vehicle (UV) segment which includes sports utility vehicles (SUVs) as well as multi-purpose vehicles (MPVs), saw a bigger growth in October.
Tata Motors Passenger Vehicles Ltd expects contribution of SUVs to its overall sales to go beyond 70 per cent with it making foray into the fast growing mid-sized segment with a premium positioning of its Sierra model, according to its Managing Director & CEO, Shailesh Chandra.
For hatchbacks and sedans, offers range between Rs 40,000 and Rs 80,000 while SUVs and multi-purpose vehicles carry benefits exceeding Rs 1 lakh.
'GST reduction will help larger and high-end cars too.'
The demand for passenger vehicles (PVs) is expected to sustain even beyond the ongoing festival season as a new set of customers, those who gained confidence to buy cars following the recent GST rate cuts, will begin to visit dealerships now, said Shailesh Chandra, president of the Society of Indian Automobile Manufacturers (Siam), on Wednesday.
Multiple tailwinds for the automobile sector, including a cut in goods and services tax (GST) rates, are keeping analysts bullish on auto stocks from a long-term perspective, even as they see the rally running its course in the near term.
'Some buyers get carried away by festival offers and purchase higher variants or larger vehicles than they truly need, which impacts running cost and long-term affordability.'
The GST Council on Wednesday approved two slabs of 5 per cent and 18 per cent effective from September 22, the first day of Navaratri.
The country's largest carmaker Maruti Suzuki India on Thursday announced a reduction in vehicle prices by up to Rs 1.29 lakh effective September 22 to pass on the GST rate cut benefit to customers.
The small sports utility vehicle (SUV) segment - comprising models less than 4 metres in length - could witness the "maximum" growth among all categories in the coming months following the recent goods and services tax (GST) rate rationalisation, Tarun Garg, chief operating officer of Hyundai Motor India (HMIL), said.
Maruti Suzuki, India's largest producer of small cars, stands to benefit the most.
In terms of safety, the Victoris has scored 5 stars in both GNCAP and BNCAP tests and that's a first for Maruti, observes Somnath Chatterjee.
The growing rift between MSIL and rival automakers has complicated the government's efforts to finalise the CAFE norms.
Tata Motors on Friday reported a 62.2 per cent decline in consolidated net profit to Rs 4,003 crore in the June quarter, impacted by volume decline across segments, drop in JLR profits due to US tariffs and high base effect due to gain from sale of discontinued operations. The auto major had posted a consolidated net profit of Rs 10,587 crore in the April-June quarter of the previous fiscal, Tata Motors Ltd (TML) said in a regulatory filing.
When it comes to the "all-new" Tata Altroz unveiled on Thursday, one might wonder if it's truly a complete overhaul or just a refreshed take on the familiar.
Siam argues that a 2040 ban could destabilise ongoing and future investments and threaten millions of jobs in the automotive value chain.
Sales growth of entry-level cars or hatchbacks like WagonR and Alto have seen a decline during the past few years due to changing consumer preference. Maruti Suzuki chairman R C Bhargava had on October 28 said that he does not expect hatchback unit sales to grow in the fourth quarter (Q4FY23) or in the next fiscal year.
Sluggish urban demand, a high base effect, and weak sales of hatchbacks and sedans weigh down passenger vehicle sales in FY25.
For FY26, the company has adopted a cautious outlook, anticipating domestic growth to broadly track the industry's low single-digit estimated growth amid ongoing economic headwinds.
Car purchases in India are largely limited to the top 12 per cent of households with an annual income exceeding Rs 12 lakh, while even small cars have become unaffordable for the remaining 88 per cent, said R C Bhargava, chairman of Maruti Suzuki India Limited (MSIL), on Friday. "How can you get high car sales growth if 88 per cent of the country are below the levels of income where they cannot afford these cars costing Rs 10 lakhs and above?
77 per cent of all transactions in the January-March 2025 period took place digitally, indicating continued preference for online car purchases.
The January-March quarter (Q4) results for 2024-25 (FY25) from the country's largest passenger vehicle (PV) maker, Maruti Suzuki India (MSIL), were a mixed bag, with revenues broadly in line but operating profit missing Street expectations. Given cost pressures, margins at the operating level were the lowest in the past seven quarters.
Hyundai Motor India and Honda Cars India on Wednesday joined the list of automakers planning to hike prices of vehicles from April, second time this year, to partially offset the impact of rising input costs and higher operational expenses. In a statement Hyundai Motor India Ltd (HMIL) said it will hike prices of its vehicles by up to 3 per cent effective in April 2025.
According to experts, even if an additional 5 per cent of people opt to buy new vehicles, it may bring a huge boost to the sector.
India's used car market, which has been growing steadily at 10-12 per cent over the last 2-3 years, is expected to reach $40 billion in FY26.
Major Indian carmakers are preparing for sluggish domestic PV sales growth of just 1-2 per cent in FY26.
However, the company has not provided a timeline for the launch of the small electric car.
Sedans and hatchbacks have both lost market share to SUVs, which now account for more than 50% share of the 4 million-odd-unit PV market in the country.
South Korean automaker Kia Motors says it will look to be a premium only brand and stay away from the entry level segment like sedans and hatchbacks. Hardeep Singh Brar, the company's India Vice-President and Head (Sales and Marketing), said that customers have accepted Kia as a premium brand. In the mass market Kia is considered to be the most premium brand. "Customers like the features and they are willing to pay for them. So, we have consciously decided that if customers like us a premium brand, let's stick to that. It is a conscious decision to stay premium and operate in that segment of the mass market," Brar said.
Tata Motors is the leader in the electric car market with about 62 per cent share.
With Onam and Raksha Bandhan just around the corner, the festival season is ready to kick off in full swing. As people embrace the celebratory spirit, companies anticipate a surge in sales this year. Consumer durables firms are expecting strong growth of 40-50 per cent in the premium segment during the upcoming season. Appliance makers also foresee increased demand for cooling appliances - refrigerators and air conditioners - which were impacted by unseasonal rainfall.
Overall, volume growth is likely to be in the range of 3-8 per cent for two-wheelers and 5-7 per cent for passenger vehicles owing to healthy demand from urban and rural areas and pending order books.
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