'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.'
It is after seven years that a sedan has claimed the top spot -- Dzire had last achieved the No.1 position in 2018.
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.
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.
Starting January, the market is expected to welcome models like the Tata Punch 2025 which is expected to be around 6 lakh, Mahindra BE 07 EV around 29 lakh, Maruti WagonR Electric around 8.5 lakh, Toyota 3-Row SUV around 14 lakh, and Volkswagen Tera to be around 8 lakh.
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.
'Growth will definitely continue to come most from the sub-four-metre SUV segment, primarily because that is where the heart of economy and affordability is. Naturally, that will keep pushing the share of that segment (in overall PV sales) higher.'
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.
Compact sedans (Maruti Dzire, Hyundai Aura, Tata Tigor)' share in the overall sedan category grew from 68% in 2021 to 74.6% in 2024. Mid-sedans' (Honda City, Maruti Ciaz, Volkswagen Virtus) share declined from 26.2% in 2021 to 20.2%.
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.
Japanese auto major Honda considers India a key market for its future growth alongside the US and Japan, according to Honda Cars India President and CEO Takashi Nakajima. The Tokyo-headquartered automaker, which operates in India through a wholly owned subsidiary, plans to drive in more SUVs in the country, as the segment continues to see robust sales across varied price points.
'We expect this festival buying spirit to continue in October as well, with upcoming festivities including Dhanteras and Diwali, which traditionally witness spirited buying from customers.'
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.
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.
Maruti Suzuki India is targeting markets like UAE, Saudi Arabia, Chile, Mexico and other Latin American countries with its upcoming new version of compact sedan Dzire to accelerate exports as it eyes over 3 lakh units of overseas shipments this fiscal, a senior company official said on Wednesday. In the domestic market, the company hopes to enhance its share in the sedan market amid the passenger vehicles market shifting towards SUVs (Sports Utility Vehicles), with the new Dzire which is slated for launch next week. "We have been growing (exports) at a rate of about 11.9 per cent in the first seven months of the financial year and we hope to continue on that momentum.
Lining up its 2030 strategy, Hyundai said it was targeting up to 30 per cent export contribution and over 1.5-fold rise in revenue, to cross the 1 trillion milestone in five years.
'GST reduction will help larger and high-end cars too.'
'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.
Maruti Suzuki, India's largest producer of small cars, stands to benefit the most.
Luxury carmakers are shifting into high gear with a mix of product launches, personalised experiences and lifestyle-led engagement.
The growing rift between MSIL and rival automakers has complicated the government's efforts to finalise the CAFE norms.
While sedan sales have declined in the mass-market segment in recent years, demand remains strong for BMW sedans, which account for 45 per cent of its sales in India.
Siam argues that a 2040 ban could destabilise ongoing and future investments and threaten millions of jobs in the automotive value chain.
'In the luxury car segment, the adoption of EVs is almost double compared to the mass market.'
The German carmaker is expanding its lineup of electric cars as it transitions away from the combustion engine.
The BYD Sealion 7 offers instant, exhilarating power, effortlessly pinning you to your seat with a 0-100 km/h sprint in just 4.5 seconds -- a performance proudly showcased on its rear badging.
Uber recorded approximately 200 per cent year-on-year growth in its pre-scheduled ride option, Uber Reserve.
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?
The Consulate General of India in Toronto said in a post on X Friday, "We are deeply saddened by the tragic death of Indian student Harsimrat Randhawa in Hamilton, Ontario."
Amid slowing volume sales among India's major automakers, Toyota Kirloskar Motor (TKM) has defied the trend with strong growth, driven by demand for hybrid vehicles and a reliable product line up. The company expects this momentum to continue in 2025. "The overall response to our cars has been fabulous. So, we foresee the same momentum in 2025 as well," Sabari Manohar, vice-president, sales-service-used car business, TKM, said.
Starlink's application for offering satcom services in India had been held up for the company's inability to comply with mandatory ownership disclosure norms.
The Virtus is indeed designed to look, act and behave like a well-built European sedan that swims in the segment between the compact sedan VW Vento and the larger Passat, says Pavan Lall.
Fort Kochi's charm lies in its oldness. Put on that cap, lace up your sneakers and those 10,000 steps are easy-peasy!
Car market leader Maruti Suzuki India on Thursday said it will hike prices by up to Rs 32,500 across various models from February 1 to partially offset the rise in input costs. Due to rising input costs and operational expenses, the company plans to increase car prices, starting February 1, 2025, Maruti Suzuki India said in a regulatory filing.
However, the company has not provided a timeline for the launch of the small electric car.
While the Slavia comes in eight different variants, it's the base model that starts at around Rs 10.7 lakh that is most likely to take a bite out of the market share of its competitors, says Pavan Lall.
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