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India 8 April 2026 7 min

India SUV Revolution: How Utility Vehicles Took 65% of the Indian Car Market

A decade ago the Indian car market was dominated by hatchbacks. In FY2024-25 utility vehicles took 65% of passenger vehicle dispatches, one of the most dramatic body-type shifts of any major market.

A decade ago SUVs and other utility vehicles (UVs) were a minority of Indian passenger vehicle sales. In FY2024-25 UVs, SIAM's category for SUVs, crossovers and MPVs, took 65% of passenger vehicle dispatches, up from around 60% a year earlier (SIAM figures via Outlook Business, 15 April 2025). Few major automotive markets have seen a body-type shift this rapid.

Why SUVs Won

Three reasons. First, India's roads are bad. Higher ground clearance is genuinely useful. Second, the Tata Punch in 2021 and the Hyundai Exter in 2023 created a sub-INR 8 lakh "micro-SUV" segment that competed directly with hatchbacks. Third, SUV styling carries more aspirational value in the Indian market than sedans or hatchbacks of equivalent size.

The Compact SUV is the Volume King

Maruti Brezza, Tata Nexon, Hyundai Venue, Kia Sonet, Mahindra XUV300/3XO, and Tata Punch. These six vehicles sit at the centre of the market, and the compact-SUV segment is now one of the largest in India.

Hatchback Decline

Hatchbacks, once the largest body type in India, are now a much smaller share. The Maruti Alto, once India's best-selling car for over a decade, has slipped well down the rankings.

See the body-type evolution chart on the India dashboard.