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SUV sales in India decline for the first time since the pandemic, while MPVs interestingly witness an increase in demand
Long driven by aspirations of status and the need to tackle poor road infrastructure, SUV demand has surged over the past decade. But after years of uninterrupted growth, the boom appears to have finally slowed—or at least hit pause.
According to a report from ETAuto, SUV sales in India were in the red for the first time in over five years in June. Our market recorded approximately 175,000 units in SUV sales in that month, 2.1% lower than in the same month last year. A senior auto industry official anonymously said that SUV sales registered just a single-digit growth (5.6%) for the first time in many years in Q1 FY2026 (572,000 units).
JATO Dynamics data shows 171,341 mainstream SUVs and 3,660 luxury SUVs were sold in our market in June this year. Compared to January this year, demand for the former has fallen significantly, by 19%. For reference, 211,946 units were delivered in the first month of the year, 40,605 units more than in June.
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SUV sales are certainly moderating, and now the only thing that remains to be seen is the level at which they normalise. However, the slowdown in SUV sales shouldn’t be considered as a sign of declining popularity of the body style in its entirety. Major layoffs in the IT sector, geopolitical uncertainties, and macro challenges are also responsible. While the demand for SUVs is plateauing, MPVs are witnessing an uptick, as per the report.
Dwindling SUV sales might just be a blip on the radar rather than an actual change in the consumer trend. In fact, a slew of highly anticipated new launches are coming by next year, which could bring excitement back to the segment. Tata Motors is set to revive the legendary Sierra and launch a first-ever Sierra.ev at the end of this year. Maruti Suzuki will introduce a new Hyundai Creta rival on a budget, allegedly called the Escudo.
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In 2026, Mahindra plans to launch the next-gen Bolero in an all-new, proper SUV character and also the facelifted Thar and facelifted XUV700. Another major blockbuster next year will be the next-gen Kia Seltos. Renault has scheduled two major SUV launches – the third-gen Duster and a three-row SUV, with the latter rumoured to be a derivative of the Boreal. Nissan will launch the mechanical cousins of at least the latter, if not both, in the same year. These are just a few of many new SUVs coming to our market by next year, which could once again drive up SUV demand.
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