Mid-size SUVs gain share in India as car buyers move to bigger vehicles

Indian car buyers are increasingly moving towards larger SUVs, with mid-size models gaining market share as consumers prioritise space, comfort and features over smaller, more affordable vehicles, reportec TOI.

Mid-size SUVs and crossovers measuring more than four metres accounted for 18.2% of domestic passenger vehicle sales in the first quarter of FY27, up sharply from 12.4% two years earlier and 15% a year ago, according to estimates by Kotak Institutional Equities.

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The shift marks a continued move towards premium vehicles in India's passenger car market, with mid-size SUVs gaining ground faster than most other segments over the past two years.

Compact SUVs, which measure less than four metres, have meanwhile lost some ground. Their share fell to 14.6% in Q1FY27 from 16.2% a year earlier and 15.3% in Q1FY25.

Why buyers are choosing bigger SUVs

The rising popularity of mid-size SUVs reflects growing demand for more spacious cabins, larger luggage areas and additional features, particularly among family and long-distance buyers.

"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.

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"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," she added.

Features such as connected technology, advanced safety systems and convenience equipment are also adding to the appeal of these vehicles. Sunroof-equipped variants, for instance, have accounted for a significant share of Hyundai's SUV volumes.

Automakers add more mid-size SUVs

Carmakers are responding to the growing demand by expanding their offerings in the segment, with new models and facelifts giving buyers more options while intensifying competition.

Hyundai Motor India plans to launch a new mid-size internal-combustion-engine SUV during the festive season, according to MD and CEO Tarun Garg. The automaker already sells the Creta in the segment.

The steady pipeline of launches reflects manufacturers' confidence in the medium-term growth prospects of mid-size SUVs. Automakers are also looking to strengthen their positions in one of the fastest-growing categories of India's passenger vehicle market.

The shift towards SUVs is meanwhile putting further pressure on traditional segments. Hatchbacks have continued to lose market share as consumers move towards larger vehicles, while sedans have remained relatively stable.

With more models entering the market and buyers increasingly willing to spend on space, technology and comfort, mid-size SUVs are emerging as a key driver of India's ongoing premiumisation trend in passenger vehicles.

With inputs from TOI