If we look at the preliminary sales of SUVs before the pandemic, they had a steady rise. 2018 was a record year of sales, especially for Maruti Suzuki, maintaining its stand as dominant position in the Market share. SUVs gained huge popularity, but couldn’t achieve a significant reach in the segment.
A comprehensive and overall market uncertainty led to showing resilience in the SUV segment, while some brands did experience steady growth in the midst of challenges.
2019 saw a massive growth, especially the SUV Vitara Brezza, hitting the top.
Other vehicles like the Hyundai Venue, Creta were leading to the top. Other strong contenders that arose in August are the Mahindra XUV300, Scorpio, Nexon, and Kia Seltos.
The Indian Market & Impact in the SUV Segment
Economic growth has slowed down in India in 2025. Numerously affected are those dependent on global markets. Consumers’ spending is facing a downturn in its ability to make good investments and purchases.
Though a fully developed recession is not contemplated, it might bring in higher prices for essential commodities and housing due to changing policies.
The rising input costs by automobile manufacturers, high vehicle prices, and consumer debt are leading to reduced purchasing power to buy cars. At some point, the anticipated reduction in cost due to elevated incentives to clear overall inventory makes affordability difficult for some buyers.
Economic downturns and strategic restructuring, reskilling, upskilling, and the impact of AI have led to massive layoffs in the IT sector, too.
International relations and global affairs flicker, and their uncertainty is impacting financial markets, leading to escalated volatility, instability, and potential conflicts influencing Investment decisions among consumers.
Macro economic challenges included an elevated inflation, Massive current account shortfalls, and fiscal strain on the government. SUVs’ sales have declined by 2.1 percent (January- June 2025) only 175,000 units sold, and 36 percent & 27percent growth have slowed in subsequent fiscals. In 2025, 11.3 percent of SUV sales dropped to a mere 5.6 percent increase in the first quarter of the year.
Rising fuel costs and buyer sentiments have brought in a major downfall since the pandemic.
MPVs are having a higher demand in sales in comparison to the SUV segment
The SUV segment is overcrowding with multiple manufacturers with identical price points and better features, impacting SUV demands. High levels of consumer debt are restricting consumers from taking vehicular loans. Indolent demands for to purchase of SUVs have increased.
The budget for the year 2025 may create a major impact and influence the Indian SUV segment.
SUVs: Potential Growth by 2030
A wide range of SUVs has been a key driver in the Indian Automobile industry.
SUVs’s always had a surge in demand due to their affordability and accessibility contributed to creating a large customer base in India.
It depends on how far the SUV segment shall normalise, as this slowdown should not be considered as an exit or decline. It might just be another pat on the charts rather than a major change in the consumer trends.
SUVs in the Indian market are expected to have an upward flight of increased demand and their push to take forward sustainable mobility solutions.
Optimistic Maruti and Mahindra are hoping that there will be a rise in sales growth shortly.
New launches are expected in the new fiscal year, creating excitement and an increase in sales in this segment. The new Tata Motors EV Sierra will hit the roads by the end of 2025, with its rival Hyundai Creta, on its affordable budget.
The next-generation Mahindra Bolero, Thars, facelifted XUV700, Kia Seltos, and Duster by Renault are all on their way in 2026.
By 2030, the SUV market in India is projected to grow to USD 33.85 billion with an annual growth of (CAGR) 10.97 percent.
The dominant and most popular SUVs are hoping to have a sales increase of 50% passenger vehicles. It is assured that there shall be a strong growth in the coming 5 years.