A notable trend is reshaping the Indian automotive landscape: consumers are increasingly choosing SUVs over traditional hatchbacks. Hatchbacks, once the go-to choice for many Indian families due to their affordability and practicality, are now facing a decline in demand. Data from July 2025 showcases a clear shift, with SUVs gaining prominence in the market.
Maruti Suzuki, a key player in the hatchback segment, witnessed mixed fortunes. While sales of the WagonR and Swift increased, models like the Alto K10, Ignis, Celerio, and S-Presso saw sales figures drop. The S-Presso experienced the most significant setback, with a 64% decrease in sales.
Tata Motors also saw a downturn in its hatchback sales. The Tiago experienced a slight drop, while the Altroz, Grand i10 Nios, and i20 faced more significant declines.
The shift to SUVs is driven by their enhanced features and space, as companies are launching new models in this growing segment. Future market trends may also be influenced by changes in government policy like potential reductions in GST, which could make small cars more competitive again.