The Indian car market is undergoing a transformation, with consumer choices evolving from compact hatchbacks to larger SUVs. Traditionally favored for their cost-effectiveness and practicality, hatchbacks are losing their appeal. July 2025 sales figures highlight this shift, revealing a decline in hatchback sales and a corresponding rise in the popularity of SUVs.
Maruti Suzuki, a major player in the hatchback category, reported varied results. While the WagonR and Swift models showed an increase in sales compared to the previous year, other models such as the Alto K10, Ignis, Celerio, and S-Presso witnessed significant sales decreases. The S-Presso experienced the steepest decline, with sales plummeting by 64%.
Tata Motors also faced challenges with its hatchback models. The Tiago saw a slight decrease in sales, while the Altroz, Grand i10 Nios, and i20 experienced more considerable drops.
This transition reflects consumers’ growing interest in SUVs, which offer more space, enhanced ground clearance, and a wider array of features. With companies focusing on new models in this segment, it will be interesting to see how market dynamics evolve. Reduced GST on small cars could also alter market dynamics.