June sees the first decrease in SUV sales in India in more than five years in the midst of economic challenges

June sees the first decrease in SUV sales in India in more than five years in the midst of economic challenges

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Monthly SUV sales in India fell for the first time in more than five years in June, dismissed by IT sector, geopolitical uncertainties and macro provisions. The segment of the sports tool -vehicle is now almost a decade the most important engine of demand for passenger cars. According to the latest industrial data for the SUV segment that was opened exclusively by ET, sales fell by 2.1% from last year to around 175,000 units in June. Segment-Wijs Sales data of passenger vehicles must still be drawn up for July.

This is the first instance of a monthly fall in SUV sales after years of continuing growth, according to industry experts. Delaying SUV sales, in addition to the already slow demand for cars, she emphasizes some buyer fatigue in the category, they noticed.

SUVs have steadily strengthened their position on the domestic market, which are currently good for around 55% of all passenger vehicles sold. The segment includes micro-SUV models, compact SUVs, both medium and large SUVs, aimed at a wide range of buyers. “The SUV sales fell for the first time since the pandemic in June. In fact, SUV sale grew for the first time in many years in modest some figures in the first quarter of FY26,” said a senior industry director, to ask for anonymity.

SUV sales grew in the strong double digits between FY20 and FY25.


In the first quarter of this tax year, however, the SUV sales delayed an increase of 5.6% with 572,000 units, of an increase of 11.3% in FY25. Turnover had grown by 42% in FY22, 36% in FY23 and 27% in FY24. SUVs have considerably exceeded the total sale of passenger vehicles, with their share to 55% from the end of March, of 14.3% in FY15. “Even if the PV turnover had fallen by around 18% in FY20 after a wider delay on the local market, the SUV turnover had fallen with a much lower rate, about 7%, raising their share in the total count. Now PV sale fell by 7% and SUVs with 2% with 2% -that has started with the dating the dating, the dating, that has been the docking with the dating the dating, that the docking with the docking was, that the docking with the docking was, that the docking was with the docking. “We have to watch in the coming quarters if the SUV’s share grows further or Bottom has been awarded.” Ravi Bhatia, confirmed the trend date for 2025. This seems to be the first long -term decline in the SUV question, because the pandemic, possibly powered by economic uncertainty, rising fuel costs and changing buyers sentiment, “he said.

Data from Jato showed the sale of SUVs, excluding luxury models, dropped in June to 171,341 units from 211,946 in January. Luxury SUV sales in the month in total was around 3,660 units.

About 3,660 units. SUVs are usually good for around 60% of all new vehicle sales in developed markets.

“In India, while the growth rate in the SUV segment has started moderating, the demand for MPVs is picking up,” said another director.

“The debate is now around which point the SUV segment will record.” However, Carmakers hope for a sales information for the rest of the tax, especially the coming party season, supported by product launches.

The largest car manufacturer in the country, Maruti Suzuki, has faith in his footprint to extend in the category via two new products this tax, including an electric vehicle (BEV).

“Our targeted product interventions have resulted in a 75% increase in the SUV market share since June 2022: from around 12% in FY23 to about 21% in FY24 and FY25,” said Partho Banerjee, Senior Executive Officer for Marketing and Sales, Maruti Suzuki.

Mahindra & Mahindra (M&M) also want to beat the trend in the industry and beat a double digit growth in SUV sales in FY26. “Mahindra has projected a target growth from middle to high teenagers for his SUV segment in FY26,” said Naliniërh Gollagunta, Chief Executive, Automotive Division, at M&M. The company is planned to introduce several models, including BEV SUVs in the middle and lower pack, two completely new BEVs and new variants of selected fossil fuel SUVs-om are growing momentum.

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