SUVs continue their dominant streak as the vehicle of choice across demographics. They have come to account for a 43 percent year-on-year traffic increase across all sub-segments, according to a statement by CarDekho.com.  
Released with an eye on the festive season of 2024, the statement takes a look at the pre-festive season traffic trends across various sub-segments of the four-wheel passenger vehicle industry during the period April-September. 
With SUVs dominating, the statement reads that 58 models are available in the respective segment. Stating that more models are scheduled to be launched in FY2024-25, it underlines the broad range of fuel and engine type combinations, catering to diverse consumer needs and providing tailored options to suit varying preferences.
In the April-September 2024 period, the mass SUV segment led the growth in the automotive market, registering a strong 43 percent year-over-year (YoY) increase in traffic. Its contribution to overall traffic on the platform rose from 50 percent to 63 percent, making it the most dominant body type. 
While all SUV sub-segments displayed significant growth, the compact SUVs (sub-four-metre) sub-segment led the charge in the SUV segment with 37 percent year-on-year growth, increasing their traffic contribution from 32 percent to 38 percent. 
Interesting is the rise in prices of hatchbacks in the Indian market with their average selling price getting close to the average selling price of SUVs. 
This is said to be one of the factors that is leading to a switch to SUVs. With executive SUVs witnessing the highest growth within the SUV category at 47 percent year-on-year increase (their share is rising from 15 percent to 19 percent respectively), the demand for SUVs is expected to rise steadily over the short and mid-term as existing as well as new infrastructure quality continues to be a matter of concern. The quality of infrastructure looks inversely proportional to the rise in toll tax ironically across highways and city roads. 
The midsize SUV sub-segment also performed well with a 31 percent year-on-year increase, as per the CarDekho.com statement.

Mass hatchback segment
In the mass hatchback segment, traffic grew by 28 percent year-on-year, driven largely by premium hatchbacks that make up 86 percent of the total traffic in the respective category. 
Premium hatchbacks experienced a 31 percent year-on-year growth, while mini hatchbacks grew by 20 percent. The micro hatchbacks saw a 22 percent decline in traffic (this includes cars like the Marut Alto).
With a shift in consumer interest away from smaller, ultra-compact vehicles evident, it is the SUVs that seem to benefit from rather than sedans. 
The sedans showed the lowest growth among all body types with an 18 percent year-on-year increase, maintaining a consistent 15 percent share of overall traffic. Despite this, the premium sedan segment saw a significant 65 percent year-on-year growth even though it is driven by just one model. The sub-segment’s contribution remains at only one percent of total site traffic.
“The continued growth of the SUV segment reflects a strong and evolving consumer preference within the automotive industry. SUVs have become the vehicle of choice for a wide range of buyers due to their versatility, enhanced driving comfort, and ability to meet the diverse needs of Indian consumers. Compact SUVs, in particular, have gained significant traction, offering the perfect combination of practicality and performance. As we see this segment expand, it's driving healthy competition, promoting innovation, and ultimately offering a wider range of choices to the Indian consumer. This surge signals a maturing market where consumers are increasingly discerning, pushing the industry to elevate its game across design, features, and value proposition,” said Mayank Jain, CEO, New Auto (CarDekho Group).

Luxury autos
On the luxury brand side, the CarDekho.com statement reads, that traffic rose by 17 percent year-on-year across all model pages. Although luxury vehicles continue to garner interest, their share of total traffic remains relatively low compared to mass market segments, it mentioned.

Image for representative purpose only
 

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Kia India, one of the leading passenger vehicle manufacturers, has announced that it has exceeded 500,000 connected cars in the Indian market.

The OEM said its connected car variants now account for approximately 40 percent of the company’s domestic wholesale volumes. This growth is supported by the Kia Connect 2.0 platform and the Connected Car Navigation Cockpit (ccNC).

The Kia Seltos is the main contributor to this total, representing about 70 percent of the connected vehicle sales, followed by the Sonet and Carens models. Data from the company indicates a trend of customers renewing their connectivity subscriptions after the initial complimentary period.

Technical features within the Kia ecosystem include:

• OTA Software Updates: Remote vehicle diagnostics and software installations to reduce dealership visits.
• Digital Key 2.0: Vehicle access and operation via smartphone or smartwatch using Ultra-Wideband (UWB) or NFC technology.
• Surround View Monitor (SVM): A 360-degree camera feed accessible through the Kia Connect app.
• Voice Recognition: Multilingual support for vehicle functions in English, Hindi, Tamil and Bengali.

Atul Sood, Senior Vice-President, Sales & Marketing, Kia India, said, "Kia India has consistently differentiated itself through its vehicle design excellence and technology leadership. Our continued focus on enhancing connected features and customer engagement initiatives such as Kia Drive Green has strengthened adoption and interaction across our connected ecosystem. The strong customer retention beyond the complimentary subscription period underscores the sustained relevance and long-term value of Kia Connect.”

The company also utilises Plant Over-The-Air (P-OTA) updates, a system that ensures vehicles are programmed with the most recent software versions before they leave the manufacturing facility.

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The Sriperumbudur facility of Hyundai Motor India Limited has been honoured with the Tamil Nadu State Level Safety Award for 2022 by the state’s Directorate of Industrial Safety and Health (DISH). The prestigious award was presented by Minister for Labour Welfare & Skill Development C V Ganesan and DISH Director Anand to senior company executives Mukundan M S and Senthil Kumar R M. This accolade, granted in the Large-Scale Industry category, acknowledges Hyundai’s ongoing dedication to exceptional safety performance, marked by a notable decline in incident rates and a systematic focus on risk mitigation.

Operating in India for over 30 years, the plant has consistently fostered a robust safety culture through comprehensive initiatives. This includes implementing widespread safety campaigns, establishing diligent monitoring protocols and driving continuous improvement programmes. The company’s approach integrates rigorous processes, proactive assessments and regular training aligned with international benchmarks, all underpinned by strong safety governance. Hyundai Motor India reiterates that the well-being of its employees is a primary concern, and it remains steadfast in its mission to advance its safety systems and sustain an environment where a culture of excellence is paramount.

Gopalakrishnan C S, Whole-time Director & Chief Manufacturing Officer, Hyundai Motor India Limited, said, “Safety at Hyundai is not a standalone initiative – it is a deeply embedded culture practiced at every level of our operations. Our goal is simple: a safe, secure working environment for every employee, every day. This award affirms the collective commitment of our teams and motivates us to strengthen our safety excellence even further.”

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Volkswagen India has confirmed that its new flagship SUV, the Tayron R-Line, will launch in the first quarter of 2026. The vehicle is aimed at the seven-seater SUV segment and will be locally assembled at the company’s plant in Chhatrapati Sambhajinagar to ensure market competitiveness.

The Tayron R-Line occupies the top position in the brand’s SUV range in India. It features the 'R-Line' trim, which includes specific design enhancements to its silhouette. The model is intended for customers requiring a seven-seat capacity alongside a focus on road presence and lifestyle versatility.

Nitin Kohli, Brand Director, Volkswagen India, said: “As we build a premium portfolio of products, we continue catering to the evolving aspirations of Indian car buyers. The all-new Tayron R-Line is the authentic flag-bearer that will drive this vision for Indian consumers. Ensuring competitiveness, we will be locally assembling this SUV at our plant in Chhatrapati Sambhajinagar.”

The introduction of the Tayron R-Line follows Volkswagen's strategy to expand its portfolio in the Indian market with vehicles that offer higher passenger capacity and updated design aesthetics.

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Toyota Motor Corporation-owned luxury brand Lexus India has concluded 2025 with an increase in demand for its flagship models – the LM and LX, which it said recorded a 50 percent YoY rise in sales.

They accounted for approximately 19 percent of the company’s total volume. The RX model also served as a contributor to the brand's growth, achieving an 18 percent increase compared to the previous year. The RX represented 22 percent of overall sales, assisting Lexus in expanding its presence within the luxury SUV segment.

At present, the LM 350h and LX 500d occupy the top tier of the Lexus portfolio in India. The LM 350h is designed as a luxury mover, focusing on travel comfort and interior refinement for passengers. Since its introduction, the model has targeted enthusiasts seeking a travel experience comparable to first-class standards.

The LX 500d has seen a response driven by demand for SUVs that combine off-road capability with luxury features. The vehicle is engineered for diverse terrains while maintaining cabin comfort and control through integrated technology and a diesel powertrain.

Hikaru Ikeuchi, President, Lexus India, said: “We are immensely thankful to our guests for their trust and support throughout 2025. The strong performance of our halo ultra-luxury models, LX and LM, reflects their confidence in Lexus and our dedication to delivering exceptional products and experiences that continue to push boundaries. As we move into 2026, we are encouraged by the outlook for luxury vehicles in India and will remain focused on delivering even more exciting offerings and memorable experiences.”

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