India’s booming SUV segment has hit a speed bump for the first time in over five years. Industry data show that around 175,000 sport‑utility vehicles were registered in June, about two per cent less than the same month last year. This softening trend has also tempered growth in the first quarter of FY 2026 to 5.6 per cent, a sharp deceleration from recent double‑digit gains. According to reports, mainstream SUV volumes totalled roughly 171,300 units in June while luxury brands added just 3,660 units, highlighting the broad‑based nature of the slowdown.
Market analysts point to a combination of factors—from rising acquisition costs and high interest rates to lingering supply‑chain constraints—that are dampening appetite for new sport‑utility vehicles. Meanwhile, seven‑seat MPVs bucked the trend, notching a nine per cent year‑on‑year rise with models such as the Maruti Ertiga/XL6, Toyota Innova Crysta, Kia Carens, Mahindra Scorpio N and XUV700 attracting strong demand. The slowdown was also uneven across the SUV category: compact SUVs such as the Maruti Brezza, Tata Nexon and Hyundai Venue continued to dominate the sales charts, while larger SUVs faced more pronounced headwinds.
Automakers are hoping that a slate of upcoming launches will reignite momentum in the coming months. New products on the horizon include the Tata Sierra EV, a Maruti rival to the Hyundai Creta, next‑generation versions of the Mahindra Bolero and Kia Seltos, updated Thar and XUV700 models, and new SUVs from Renault and Toyota. With nearly a dozen fresh entries lined up, industry watchers believe the SUV boom could resume once economic conditions stabilise and the new models hit showrooms.
