The Indian automotive sector is witnessing a significant shift in consumer preference. Hatchback cars, once the mainstay of the market due to their affordability, compact size, and fuel efficiency, are experiencing a decline in sales. Recent data from July 2025 indicates a clear trend: SUVs are rapidly gaining ground and filling the gap left by the waning popularity of hatchbacks.
Maruti Suzuki, a dominant player in the hatchback segment, observed a mixed performance. While models like the WagonR and Swift saw increased sales year-over-year, the Alto K10 experienced a 20% drop in sales. The Ignis, Celerio, and S-Presso also faced substantial declines, with the S-Presso suffering the most, a 64% decrease.
Tata Motors’ popular Tiago hatchback saw a modest 1.5% decrease in July sales. The Altroz witnessed a 13% decline, and the Grand i10 Nios and i20 also recorded notable decreases of 28% and 31%, respectively.
This shift signifies a growing preference for SUVs, driven by their increased space, better ground clearance, and the continuous introduction of new models and advanced features. While the market trends are changing towards bigger cars, there is expectation that a decrease in the GST could reduce the price of small cars, impacting their market.