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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Vietnamese electric vehicle brand VinFast has announced the completion of its strategic restructuring into three automotive brand lines. The company officially unveiled two flagship models, the Lac Hong 800S and the Lac Hong 900S, to head its ultra-luxury marque.

The restructuring divides the portfolio into the Lac Hong ultra-luxury line, the VF passenger vehicle range and the Green commercial mobility brand. VinFast has maintained a leadership position in Vietnam for 16 consecutive months, delivering 175,099 vehicles in 2025.

The three brands target different market segments to support the company's next phase of development:

• Lac Hong: Comprises the 900 LX, 900S, and 800S models.
• VF: Includes a portfolio of passenger EVs from the VF 3 to the VF 9 and the VF MPV 7.
• Green: Developed for commercial mobility, featuring the Limo Green, Herio Green, Nerio Green and Minio Green models.

The new Lac Hong 800S and 900S models use design elements inspired by Vietnamese heritage, such as a grille with vertical slats and emblems evoking the Lac bird. Interior materials include Nappa leather, wood and gold-plated accents.

They are equipped with a tri-motor system with one front motor and two rear motors; a combined output of 460 kW and a fully active suspension system for ride comfort and stability.

On the inside, it gets executive seating and power-assisted doors. The 900S includes a privacy partition, a projection entertainment system and a workstation.

The Lac Hong 800S and 900S are scheduled for commercial launch in 2027.

At present, VinFast operates manufacturing facilities in Vietnam and India, with planned operations in the United States. The facility in Thoothukudi, Tamil Nadu, represents a USD 500 million investment and is designed to produce 150,000 vehicles annually.

Duong Thi Thu Trang, Deputy CEO of Global Automotives, VinFast, said, “Following a period of accelerated growth - achieving the No.1 position in Vietnam and establishing our presence in key regional markets - the completion of our three-brand structure lays the foundation for our next phase of development: structured, professional and breakthrough-driven. The Lac Hong 800S and 900S stand as further proof of VinFast’s technological mastery, product development capability and advanced manufacturing expertise. We believe products created by Vietnamese intellect, craftsmanship and resilience not only inspire national pride but also convey a powerful message about Vietnam’s cultural heritage and technological stature in this new era of global advancement.”

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Mercedes-Benz has introduced the all-new V-Class to the Indian market, a model poised to transform the landscape of private luxury transportation. This vehicle is designed to offer an ambiance of spaciousness, freedom and serenity, effectively functioning as a personal sanctuary for those who value both privacy and sophisticated comfort while traveling. By merging progressive design with exceptional roominess and lavish appointments, it establishes a new benchmark in its category.

The vehicle is built on an extended wheelbase platform (5,370 mm length, 3,430 mm wheelbase, 1,928 mm width, 1,880 mm height), which provides the foundation for its generous interior. Its primary focus is on creating what the brand describes as a 'Private Suite' on wheels, ensuring each journey is tailored to individual preferences. The cabin is configured with six seats, with the second row featuring premium individual seats equipped with ventilation, massage functionality, calf rests and integrated wireless charging. In a segment-first move, the third-row seats also offer ventilation, ensuring passenger comfort is prioritised throughout the vehicle. The front seats are fully electric and include ventilation and adjustable cushion length, establishing a commanding position for the driver.

The sensory experience within the V-Class is meticulously curated. A 64-color ambient lighting system allows passengers to personalise the cabin's mood, complemented by a high-fidelity Burmester surround sound system with 15 speakers. Climate comfort is managed by an advanced automatic system, and the ENERGIZING Comfort package offers a selection of up to 10 wellness programs that harmonise various in-car systems. Practical luxury is evident in the electrically operated sliding doors on both sides and the split tailgate, which can be controlled through multiple touchpoints for effortless access and loading in any situation.

The V-Class offers both petrol and diesel powertrain options, each paired with a nine-speed automatic transmission. It is the first market globally to offer the AIRMATIC air suspension system on both fuel types, ensuring a supremely comfortable ride across varying terrains. The vehicle's exterior is defined by the AMG Line package, featuring a distinctive radiator grille and LED lighting. Advanced technology includes the MBUX infotainment system, MULTIBEAM LED headlights that adapt to traffic and a comprehensive suite of driver assistance systems for safety and convenience. Available in five metallic exterior shades and two interior leather choices, the all-new V-Class represents a holistic approach to mobile luxury, combining space, technology, and personalized comfort in a locally produced package.

In a significant strategic development, Mercedes-Benz India will produce the new V-Class locally. This decision reinforces the company's long-standing dedication to the Indian market and follows the recent announcement of local production for another ultra-luxury model. The V-Class thus becomes the second high-end vehicle this year to be assembled domestically, underscoring the brand's commitment to deepening its roots in the country. Customer bookings are now open, with an initial deposit of INR 500,000 securing priority delivery and an introductory price for existing clientele.

Santosh Iyer, Managing Director & CEO, Mercedes-Benz India, said, “We are delighted to introduce the all-new V-Class for the Indian market, redefining the concept of a ‘private suite’ offering luxury, space and privacy to our exclusive customers. The V-Class addresses a growing trend amongst India’s opulent customers and trend setters, who seek an oasis of personal space, tranquillity and privacy while travelling in the lap of luxury. The decision to start the local production of the V-Class further reinforces our India commitment, adding significant value to our customers.”

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Maruti Suzuki India is celebrating the 10th anniversary of its compact SUV, the Brezza. Launched in 2016, the model has remained among the top 10 bestselling passenger vehicles in India for a decade and has contributed to the compact SUV segment's 31 percent share of the current market.

The Brezza has transitioned through two generations since its debut. In its first year, the vehicle received 28 automotive awards, including the Indian Car of the Year (ICOTY) 2017. The company data indicates that 56 percent of its buyers consider the model their predetermined choice during the purchasing process.

The current generation is equipped with a 1.5L petrol engine featuring Progressive Smart Hybrid Technology. It is available with a six-speed automatic transmission and steering-mounted paddle shifters.

Standard and available features include:

• Safety: Six airbags, Electronic Stability Program (ESP), and Hill Hold Assist.
• Technology: 360-view camera, Head-Up Display (HUD), and Smart Play Pro+ infotainment.
• Cabin: Electric sunroof and surround sound audio.

Partho Banerjee, Senior Executive Officer, Marketing & Sales, Maruti Suzuki India, said, “The Brezza story is one that has empowered the SUV era in India. Conceptualised, designed and developed with new-age customer aspirations, the Brezza’s authentic SUV DNA and feature-loaded cabin have constantly redefined customer expectations with each new model launch. As we reflect on its journey through the decade on its 10th anniversary, it’s worth noting that the Brezza has not just consistently retained its position as India’s most loved SUV; it has also steadily expanded the market share for the entire compact SUV segment to 31 percent contribution to today.”

“The Brezza name today is synonymous with SUVs and continues to command strong brand consideration, with 56 percent of customers considering it as their predetermined choice. We at Maruti Suzuki are deeply thankful to our customers for making the Brezza their SUV of choice for a decade. We remain committed to offering our customers the perfect blend of style, technology, performance, and appeal that wins brand love,” he added.

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Maruti Suzuki India, the country’s largest passenger vehicle manufacturer, is seeing retail sales growth along with robust export performance.

The company is seeing rising traction across its product portfolio, including demand for hatchbacks, SUVs and CNG models, even as it operates at nearly full capacity across plants.

For February, the company clocked total sales of 214,000 units, marking its highest-ever monthly performance across domestic and export markets. Overall wholesales for the month stood at an all-time high of 264,000 units, the highest in the company’s 40-year history. Retail sales touched 150,000 lakh units, up 12 percent YoY, with channel inventory maintained at a lean 12 days, including seven days of transit stock.

Partho Banerjee, Senior Executive Officer – Marketing & Sales, Maruti Suzuki India, said “We are currently operating at close to 100 percent capacity, with a new production line commissioned in April and scaling up from May. “Despite the capacity constrain, we have delivered an all-time high retail performance and are seeing robust bookings of 190,000 units, growing at around 20 percent,” he noted.

SUV Surge Lifts Market Share

A key growth driver has been the company’s sharper focus on higher-value vehicles, particularly in the mid-SUV segment. Maruti Suzuki has doubled its monthly SUV volumes from an average of 10,000 units in FY2024-25 to around 20,000 units currently. Its market share in the SUV segment has expanded from 12.8 percent to 19 percent.

Industry passenger vehicle wholesales stood at 381,665 units in February, with expectations of 420,000–450,000 units in the coming months. While the broader industry is projected to grow 11–12 percent, Maruti Suzuki’s retail growth of 12 percent has enabled it to gain share, reaching 40.06 percent on the Vahan portal. The company said it has gained market share following the recent GST revision, despite production constraints.

To reduce waiting periods and balance demand across models, the company is calibrating production. Waiting periods for SUVs have increased by two to three days, while the WagonR continues to see over a month’s wait. Capacity additions at the Kharkhoda plant are expected to gradually add 100,000–120,000 units annually, supporting production of two to three models and easing pressure across segments.

CNG Momentum Continues

CNG models remain a strong pillar of growth. CNG penetration stood at nearly 44 percent in February and close to 40 percent for FY2026 (up to February). The company has sold 670,000 CNG vehicles so far this fiscal, reflecting 18.2 percent growth.

Banerjee highlighted the success of the S-CNG portfolio, including the Victoris under-body CNG kit, as a key contributor to this expansion.

Exports Hit Target Early

On the exports front, the company dispatched over 39,000 units in February, up 56.5 percent YoY. For FY2026 (April 2025 to February 2026) exports have crossed 400,000 units, marking 33.7 percent growth and enabling the company to achieve its full-year export target ahead of schedule.

Rahul Bharti, Executive Director – Corporate Affairs, noted that while the overall passenger vehicle industry’s exports grew around 7 percent till January, Maruti Suzuki’s exports expanded by over 30 percent, rising above 33 percent in February. The company now exports to over 100 countries.

The eVitara has emerged as a strong export performer, crossing 21,000 units across more than 39 countries, including the UK, Denmark and Germany. The company said it is dispatching one eVitara to every Nexa outlet and increasing test-drive vehicles to meet rising customer enquiries, which are running at nearly 2,000 per day.

Addressing concerns around geopolitical tensions in the Middle East, Bharti said the company’s export exposure to the region stands at around 12.5 percent in FY2026. “Our export portfolio is well diversified. We are not just increasing exports, but doing so in a broad-based manner to de-risk ourselves. We continue to monitor the situation,” he said.

For FY2026, Maruti Suzuki India remains on track to achieve total sales of 2.2 million units, including domestic sales, exports and supplies to other OEMs. Additional capacity enhancement at its Gujarat facility from July will support electric vehicle production, while the ramp-up at Kharkhoda is expected to ease supply constraints across the portfolio.

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