The Indian car market is experiencing a significant change in consumer behavior. The demand for hatchbacks, which were once the preferred choice due to their compact size and affordability, is diminishing. Sales data from July 2025 reveals a notable trend: SUVs are becoming increasingly popular, filling the void left by the declining sales of hatchbacks.
Maruti Suzuki, a prominent manufacturer in the hatchback segment, demonstrated a mixed performance. The WagonR and Swift models experienced increased sales, while the Alto K10, Ignis, Celerio, and S-Presso saw sales decline. The S-Presso faced the most substantial decrease, with a 64% reduction in sales.
Tata Motors also faced headwinds in its hatchback sales. The Tiago’s sales were slightly down, and the Altroz, Grand i10 Nios, and i20 registered substantial declines.
This transformation in consumer preferences shows a strong inclination towards SUVs, which offer greater space and advanced features. Companies are also focused on bringing new models and features to the SUV segment. There is also speculation that potential GST cuts could make smaller cars more affordable, changing market trends.