SUV Craze in India : In the past five years, India’s car market has gone through a major transformation. SUVs (Sport Utility Vehicles) have taken over as the most preferred vehicle type among Indian buyers, while small hatchbacks — once the top sellers — are slowly losing their shine.
SUVs on the Rise, Hatchbacks Losing Ground
According to a report by ET Auto, SUVs have consistently been the top choice for car buyers over the last five years. On the other hand, hatchbacks have seen a steady decline in demand.
Automakers have clearly noticed this shift — that’s why almost every brand is now focusing on launching more SUV models loaded with features, technology, and a premium feel.
India’s Move Toward Premium Cars
A study by SOIC Research, titled “Premiumisation: India’s Next Consumption Wave”, shows how Indian car buyers are moving from small cars to more premium and feature-rich vehicles.
The report highlights that SUVs now make up nearly 50% of all passenger vehicle sales in India, while hatchbacks are losing ground every year.
Between FY2018-19 and FY2023-24, the data shows a clear trade-off — as hatchback sales dropped, SUV sales sharply increased. This is a strong sign that the Indian auto industry is upgrading.
What Automakers Are Saying
Auto industry leaders agree that the SUV boom is no coincidence.
Dr. Anish Shah, MD & CEO of Mahindra Group, said,
“Mahindra has decided not to make sedans, hatchbacks or smaller SUVs.”
Tata Motors MD Shailesh Chandra also shared,
“The SUV segment is growing much faster than the overall industry — driven by both upgraders and first-time buyers.”
Clearly, carmakers are responding to what buyers want — bigger, safer, and more comfortable SUVs.
The Numbers Tell the Story
The data for 2024 shows that:
- SUVs grew 23% year-on-year, while
- Hatchbacks fell by 17% in the same period.
SUVs now hold a 52% market share in India’s passenger vehicle segment, while hatchbacks have dropped to just 26% — their weakest performance in almost 20 years.
As R.C. Bhargava, Chairman of Maruti Suzuki, puts it:
“India is graduating from small cars to upper-segment cars. The long-term trend clearly favours SUVs.”
Why Buyers Prefer SUVs Today
There are several reasons behind India’s growing love for SUVs:
- Better road presence and higher seating position
- Spacious interiors and stronger build quality
- Feature-packed designs with modern tech and safety
- Improved ride comfort for long drives and rough roads
Today’s Indian buyers are ready to spend a bit more for comfort, safety, and status appeal — something SUVs deliver perfectly.
The Road Ahead
Looking at current trends, SUVs are expected to dominate the Indian car market even more in the coming years. Hatchbacks may see small revivals, but the long-term shift is clear — India has moved beyond compact cars and is now embracing premium, feature-loaded SUVs.
The message from the market is simple: bigger, bolder, and smarter cars are the future.
SUVs Become The Most Preferred Vehicle Choice In India – Here’s Why