SIAM: India’s SUV boom continues in January 2026; Compact cars lose momentum

India’s passenger vehicle market continued to expand in January 2026, and while overall domestic sales grew by 8 per cent to 3,79,394 units, the underlying segment-wise volumes reflect a broadening gap between utility vehicles and compact passenger cars.

According to data released by the Society of Indian Automobile Manufacturers (SIAM), domestic sales of SUVs rose 15.9 per cent year-on-year to 2,46,844 units in January 2026, compared to 2,12,995 units in January 2025. In contrast, passenger car sales declined by 5.1 per cent to 1,20,636 units, down from 1,27,065 units in the same month last year.

SUVs lead domestic volumes

SUV sales rose 15.9 per cent year-on-year in January 2026, with Maruti Suzuki claiming the top spot with 75,609 units sold

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SUV sales rose 15.9 per cent year-on-year in January 2026, with Maruti Suzuki claiming the top spot with 75,609 units sold

The January performance reflects the sustained shift in buyer preference towards SUVs, which now account for a dominant share of the passenger vehicle market. In this category, Maruti Suzuki retained the top spot with domestic sales of 75,609 units in January 2026, up from 65,093 units a year earlier. Mahindra followed with 63,510 units, registering a sharp increase over 50,659 units in January 2025. Hyundai reported 36,919 SUVs sold during the month, a slight decline compared to 37,086 units last year.

Other key players included Kia with 27,603 units, up from 25,025 units in January 2025, and Toyota, which recorded 27,465 units compared to the 22,495 units sold in the same period last year. Growth in sales was visible across multiple players, indicating broad-based demand rather than isolated momentum.

In the April 2025 to January 2026 period, domestic sales of SUVs stood at 24,52,614 units, up from 22,61,715 units in the corresponding period of the previous fiscal year. Here, Maruti maintained its leadership with 6,16,875 units, followed closely by Mahindra at 5,39,986 units, highlighting their continued dominance in the SUV space.

Passenger cars witness sales slump

Passenger car sales declined 5.1 per cent compared to January 2025 (REUTERS)

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Passenger car sales declined 5.1 per cent compared to January 2025 (REUTERS)

In comparison, the passenger car segment continued to face pressure. Domestic sales in January 2026 fell to 1,20,636 units from 1,27,065 units a year earlier and the dip in momentum is reflected in the individual performances of each company. While Maruti Suzuki remains the No.1 player in the category, its total domestic sales of 87,006 units mark a decline of over 10,000 units in January 2025.

Honda reported passenger car sales of 3,950 in January 2026, down from 5,366 units in January 2025, while Renault fell to 503 units from 569 units a year earlier. Hyundai remained the only OEM to go positive with 22,188 units sold, up from 16,917 units in the year-ago period.

The cumulative April–January numbers put domestic sales at 11,23,748 units in 2025-26, marginally higher than the 11,03,580 units sold in the same period of the previous year. This suggests that while long-term trends remain relatively stable, the latest monthly reading reflects a slowdown in passenger car sales.

The ever-increasing gap between SUVs and passenger cars continues to shape the composition of the auto market. SUVs keep consolidating their lead with sustained launches, increasing preference for higher ground clearance and rugged dynamics, and a growing acceptance of larger body styles across price brackets. Meanwhile, the compact car segment, which is traditionally driven by demand for entry-level models, is witnessing softer volumes amid evolving buyer preferences.

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