CHENNAI: Indian car buyers’ love for sports utility vehicles (SUVs) is moving up the price ladder. After years in which compact SUVs powered the country’s shift away from hatchbacks and sedans, mid-size SUVs are now taking a bigger slice of the passenger vehicle (PV) market, having gained share faster than most other segments over the past two years.Mid-size SUVs-crossovers above four metres that automakers classify in this category-accounted for 18.2% of domestic PV sales in the first quarter of FY27, up from 12.4% two years earlier and 15% a year ago, according to estimates by Kotak Institutional Equities.Compact SUVs (under four metres in length), by contrast, have seen some moderation in their share. Their share fell to 14.6% in Q1FY27 from 16.2% a year earlier and 15.3% in Q1FY25.The shift towards mid-size SUVs signals that buyers are increasingly prioritising space, comfort and features. For instance, sunroof-equipped variants have accounted for a significant portion of Hyundai’s SUV volumes.“This indicates a continuing premiumisation trend in the PV market, with consumers increasingly opting for higher-value vehicles that offer greater versatility and comfort,” said Poonam Upadhyay, director at Crisil Ratings. “Mid-size SUVs offer more cabin and luggage space than their smaller counterparts, making them well-suited for family and long-distance travel. As household incomes rise and ownership cycles mature, many buyers are willing to pay a premium for these benefits.“Features such as connected technology, advanced safety systems and convenience equipment are further strengthening the appeal,” she added.
Mid-size SUVs gain ground in India as buyers shift towards bigger, feature-rich vehicles
New models boost marketThe supply side is also responding. A steady stream of new models and facelifts has widened choice and intensified competition. Hyundai Motor India, for instance, plans to launch a new mid-size internal-combustion-engine SUV during the festive season, according to MD and CEO Tarun Garg. The company already sells the Creta in the segment.The increase in launches reflects manufacturers’ confidence in the segment’s medium-term demand outlook. It is also a response to intensifying competition, as automakers seek to strengthen their market positions in one of the fastest-growing categories within PVs, said Upadhyay. With the SUV boom continuing, traditional segments such as hatchbacks are gradually losing market share, while sedans have remained relatively stable.
