SUVs today account for more than half of all passenger car sales in India. Small cars are making a comeback following the recent Goods and Services Tax (GST) cuts, but only one sedan – the Mercedes CLA – and one crossover – the Fronx hybrid – will still hit the market over the next five months.
One of the most anticipated launches this season is Tata Motors’ revived Sierra, a mid-size SUV, which is making a comeback after 22 years. Teasers of the model have already created nostalgia and excitement ahead of its debut later this month. Mahindra is gearing up to unveil its first ‘born electric’ seven-seater SUV, while Maruti Suzuki – which has just started halting e-Vitara exports to Europe – is preparing to launch in India next month. Foreign players are charged the same amount.Renault’s new generation Duster and Nissan’s Tekton will add strength to an already busy SUV calendar. In the luxury segment of the market, BMW and Volvo will drive new premium electric SUVs. Traditionally, automakers focus on clearing year-end inventories after the Diwali season and avoid major launches before the model year reset.
But this time, companies are sticking to aggressive timelines as a combination of GST relief, easier financing and pent-up festive demand has kept dealerships running at full capacity, industry insiders say. “To take advantage of the boom, many are sticking to schemes never seen before,” a senior official at a major car company said on condition of anonymity. This is not surprising as popular models such as the Maruti Brezza, Tata Nexon and MahindraEquilibrium law
It reflects the power of consumer appetite and the limits of manufacturing capacity, said Ravi Bhatia, president of Jato Dynamics, a data and analytics company focused on the automotive industry. According to the Federation of Automobile Dealers’ Association (Fada), passenger car sales in India grew 11.4% year-on-year to around 557,000 units in October.
Looking ahead, 2026 will test the sector’s ability to balance growth with new challenges, industry experts say. Automakers will have to deal with the rollout of E20 ethanol, CAFE 2027 efficiency standards and a rapidly accelerating shift to electrification. “Manufacturing agility, not just policy windfalls, will decide who sustains growth,” said Bhatia.
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