The year was 2000. The first two Completely Built Units (CBU) of Skoda Octavia landed in India and rushed to Aurangabad where the Volkswagen Group company would eventually set up a modern manufacturing facility. A confident Imran Hassan, as the head of the Czech company in India, looked keen to drill the fact that his Octavia was a car with a Czech badge but actually German in its quality – build and almost all of that it had to offer. A precursor of a segment that would pull buyers big time, the Octavia was official launched a year later in 2001. It was the same year that the Honda Accord was launched, albeit at a higher price point. The Hyundai Sonata too hit the market soon. The Honda Civic arrived in 2005, whereas the Toyota Corolla in 2003. The Hyundai Elantra arrived at round the same time. With SUVs yet to be the rage, these aspirational ‘executive’ sedans soon defined a new standard in the Indian auto industry. They came to occupy what would be termed as the C+ or D-segment. Forming an upper crest of sedans that were status and lifestyle-oriented, the two segment cars drew large sales volumes. The Octavia sold an estimated 8,000 units in 2005. A year before, in 2004, Honda Siel Cars sold 2,977 Accords. It cornered an enviable market share of 40 percent in its segment, an increase of 69 percent over 2003.

Between 2001 and 2010, the ‘executive’ sedan segment continued to be the ‘force’ with good sales. The introduction of new models like the Toyota Corolla and Honda Civic helped. The launch of large SUVs like the Hyundai Terracan, Ford Endeavour and Honda CR-V in the same time span did not create much ruffle as these were priced higher and were out of reach of many. It was with the launch of the Toyota Fortuner in 2009 that the SUV segment began gaining some serious muscle. By then, the D-segment had seen a good amount of shake and tumble. New additions included the Volkswagen Jetta and Passat. By 2011, the segment comprised the Toyota Corolla, Skoda Octavia, Honda Civic, Volkswagen Jetta, Hyundai Sonata Embera, Chevrolet Cruze and a few others. Crowded it became, and with an amount of fanfare to boast of. It turned out to be a segment that every manufacturer wanted a pie of. This, despite the SUV rage catching on since 2012 as the Ford EcoSport and Renault Duster arrived on the scene.

Vehicle buyers in India were suddenly exposed to a wider scheme of things; they were in fact torn between choosing an aspirational sedan or an SUV. The D-segment cars soldiered on with fair numbers to talk home about, albeit the likes of Civic and Octavia and not the Accord and the Sonata. On muted sales volumes, Honda discontinued the Accord in 2013. In May 2013, only 24 units of the ‘executive’ sedan were sold as compared to the sale of 68 CR-Vs. The Toyota Corolla sold 368 units in May 2013 as compared to the sale of 353 numbers in the month before. The Volkswagen Jetta sold 266 numbers in May 2013, and the Passat, 141 numbers. The Octavia, renamed as the Laura, sold 305 units in May 2013 as compared to the sale of 126 units in April 2013.

The near six-car D-segment has shrunk to a lone warrior in 2021. With the latest generation Honda Civic launched and quietly discontinued, the only car that seems to make up the segment today is the new Skoda Octavia. In the absence of Toyota Corolla, the only other car in the segment to give company to the Octavia is the Hyundai Elantra. Its numbers are anything to write home about today. The new Octavia has been priced uncomfortably close to the Superb with a starting price of INR 26 lakh. When it was first introduced in 2001, it was priced at no more than INR 10 lakh.

The executive sedan dilemma

If the Renault Duster should be credited to create some serious pull towards SUVs in India starting from 2012, today, it is the segments containing SUVs that are the most crowded. The clues of how the D-segment has shrunk to include just the Elantra or the Octavia (the new Octavia actually looks to have moved up and beyond the reach of this segment ironically) may be found in the proliferation of the SUVs at various levels – right from the Ford EcoSport level to the Toyota Fortuner level (where SUVs assume a serious form and function, complete with a 4WD system). A segment that did an estimated 10,000 units in 2005 has come down to a few hundred units in 2021. In January 2021, 32 units of the Elantra were sold. Eight units of the Octavia were sold. The Superb sold 239 units in the same month! Comprising cars that measure over 4.5m in length and are powered by engines with a displacement capacity of between 1800 cc and 2000 cc, the D-segment contenders have been priced between INR 15 lakh and INR 25 lakh.

Sitting above the C-segment, which consists of cars like the Maruti Ciaz and the Hyundai Verna, the D-segment cars have always been about status, comfort, features and performance. They are therefore about lower sales volumes and high production costs, making them difficult to pursue by many automakers. Proving to be a segment that has been tough to crack for many OEMs, the ones to taste immense success have been Skoda and Toyota with their Octavia and Corolla, respectively. With sales shrinking to become a fraction of that of the SUVs, and even not being as strong during their peak, the D-segment is a study that should reveal the time travel of the Indian passenger vehicle space. Affected extensively by the proliferation of SUVs at various price points, the D-segment is all but gone. The recent figures by SIAM indicating that SUV acceptance has increased steadily, and has grown to be more than the total sales of sedans and hatchbacks combined in the April-June quarter of 2021, the D-segment, it is clear, has shrunk drastically. With the B-SUVs (like Maruti Suzuki Brezza, Hyundai Venue, Tata Nexon) eating into the C-sedan segment and the larger C-SUVs (like KIA Seltos, Tata Harrier, Hyundai Creta) taking a pie out of the D-sedan segment, what was once considered as the most coveted has now been relegated to soldier on with much difficulty.

With India refusing to shift from being a price sensitive market, and with a certain purchasing power equation always present, the growth in SUVs that come at desirable price points with an aspirational value to talk about, the D-segment, it may be an exaggeration to say is on its last legs. Undercutting sedans when it comes to pricing, SUVs are proving to be the ruthless D-segment killers. Presenting a strong perception regarding ‘value for money’, it is they that are providing no chance for even the existing D-segment contenders to have much leeway. They may be world-class and highly regarded the world over, but the D-segment cars like the Skoda Octavia and Hyundai Elantra look like they are up against a wall. Made from Completely Knocked Down (CKD) kits that are weighed by the cost versus volume considerations, the D-segment cars that exist suffer from a significant cost disadvantage. Add low demand, and it is not surprising for Skoda to position the new Octavia within rubbing distance of the Superb in terms of price and features. Such is it that those looking for ventilated seats could go for the Superb and those not needing them could for the Octavia!

With such fine differentiation defining the current crop of vehicles that make up the D-segment, a big shake down does not seem far away. It could be driven by regulations and market requirements for certain. Already dissuading many OEMs to drop their D-segment offering, regulations like BS VI have indeed been a big factor. The other has been the availability of SUVs at price points that correspond with D-segment sedans. A big plus concerning SUVs is the status and lifestyle image they present. The other is their ability to travel over rough terrain and provide good visibility due to the high seating position. Providing a sense of invincibility, SUVs seem to offer more than a D-segment sedan could, today. At the top, it has increasingly come under pressure from luxury sedans and other offerings from brands like Audi, Mercedes-Benz and BMW. Some of the entry-level products from these OEMs don’t cost a premium. Owning used luxury cars has also become easy as their volumes have risen. This too has put pressure on the existence of the D-segment without any doubt. W ith the Octavia taking a position within close proximity to the Superb, the future of D-segment, at best, looks tough. This, even with the talk of the new Elantra being introduced gaining force with every passing day. Unless Hyundai unleashes the Elantra with some novel trick up its sleeve, there’s not much left to talk about the once glorious D-segment. (MT)

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Global NCAP, the automotive safety watchdog, has announced the latest results for its #SaferCarsForIndia campaign, with two models from Maruti Suzuki India, the country's largest passenger vehicle manufacturer, receiving mixed results.

The latest crash test result saw Global NCAP awarding the Maruti Suzuki Celerio a three-star rating for adult occupant protection following the inclusion of six airbags as standard. A previous version of the vehicle, equipped with two airbags, had received two stars for adult occupant safety and one star for child protection.

The technical evaluations of the six-airbag Celerio indicated protection levels ranging from good to marginal. The assessment noted that both the footwell and the bodyshell were unstable. Tests also showed exposure of children’s heads during front and side impacts.

On the other hand, the company’s popular sedan model the Maruti Suzuki Ciaz received a 1-star rating in the same assessment. The report for this model highlighted:

• The absence of side head protection.
• An unstable footwell and bodyshell.
• A lack of three-point seatbelts in all seating positions.

In contrast, Global NCAP reported that the new Dzire and Victoris models achieved five-star ratings.

Richard Woods, Chief Executive Officer of Global NCAP, said, “We are encouraged that Maruti Suzuki is committed to improving safety with five star performance for new models like the Dzire and Victoris, it remains disappointing however that some legacy models fall short.”

The results follow a commitment from Maruti Suzuki to increase safety standards across its future vehicle range.

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CARS24 has announced the promotion of Divanshu Saxena to Chief Business Officer (CBO) of its NBFC arm, CARS24 Financial Services.

In his new role, Saxena will oversee the strategy, growth and execution of the financial services division. His responsibilities include scaling lending operations, managing risk and maintaining profitability as the company develops its financial services platform.

Saxena previously managed the consumer financing business for LOANS24. During his tenure, the division recorded growth in finance penetration and contributions from non-retail lending. The company noted that his work focused on unit economics and portfolio quality.

Ruchit Agarwal, Co-Founder & Group CFO, CARS24, said, “Divanshu has played a pivotal role in building CARS24 Financial Services into a strong and institutionally sound business. His disciplined approach to growth, deep understanding of lending economics, and consistent execution have laid a solid foundation for scale. We are proud to elevate leaders from within, and as CBO, Divanshu will be central to shaping the next phase of growth for LOANS24.”

Before joining CARS24, Saxena served as a Project Leader at Boston Consulting Group (BCG) within the Financial Services and Industrial Goods practice. He is an alumnus of IIM Calcutta, where he graduated with a silver medal, and Shri Ram College of Commerce (SRCC), University of Delhi.

Divanshu Saxena said, “Building LOANS24 has been about creating a lending business that balances speed with discipline and growth with resilience. As CBO, my focus will be on scaling responsibly, strengthening our fundamentals, and continuing to build a financial services platform that earns long-term trust from customers and partners.”

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South Korean auto major Hyundai Motor Group has announced executive appointments effective from 1st January 2026. The changes focus on the transition to software-defined vehicles (SDV) and the development of manufacturing technology.

In total, 219 executives have been promoted across the Group, comprising four Presidents, 14 Executive Vice Presidents, 25 Senior Vice-Presidents and 176 Vice Presidents. Approximately 30 percent of these promotions are within R&D and technology sectors.

Manfred Harrer has been promoted to President and Head of the R&D Division. Since joining in 2024, Harrer has managed vehicle development. His new role focuses on SDV competitiveness and development projects.

Juncheul Jung is promoted to President. Jung currently manages the Manufacturing Solutions and Procurement Divisions. His remit involves the Group's Software-Defined Factory (SDF) approach and the integration of robotics into production systems.

Yeong Il Choi becomes Executive Vice President and Head of Domestic Production. Choi also takes the role of Chief Safety Officer (CSO) for production facilities in South Korea.

The company also announced revamping leadership positions in its regional business, where it has appointed Seung Kyu Yoon as President of Kia North America Operations, Bo-Ryong Lee as President and CEO of Hyundai Steel Operations, Gang Hyun Seo as Head of Corporate Planning, Affiliate Business Optimisation, Sungwon Jee as Executive Vice-President, Hyundai Brand Marketing and Yongseok Shin as Executive Vice-President of HMG Business Intelligence Institute.

Hyundai Motor Group has internalised technologies including the 'Pleos Connect' infotainment system and 'Atria AI' for autonomous driving. Appointments in engineering include Jeonghun Seo in Battery Engineering and Duckhwan Kim in Hydrogen and Fuel Cell Engineering.

Jaehoon Chang, Vice Chair, continues to oversee the direction for mobility, hydrogen energy and robotics. Within the financial sector, Chang Hyun Cho (Hyundai Card) and Si Woo Jeon (Hyundai Commercial) have been promoted to Executive Vice-President.

"The appointments are intended to strengthen organisational resilience and expand the leadership pipeline across functions. In addition, the appointments reflect the Group’s commitment to turning global uncertainties into opportunities for renewal and growth. It will continue to advance bold leadership transformation and secure strong competitiveness in the SDV era," the company said.

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Maruti Suzuki India has attained a production milestone of 3.5 million units for the popular hatchback the WagonR.

The model, which spans three generations, was first launched in India in December 1999 and is currently manufactured at the company's facilities in Gurgaon and Manesar, Haryana.

The WagonR joins the Alto and Swift as models within the Maruti Suzuki portfolio to reach this volume. Globally, the Suzuki WagonR was first introduced in Japan in September 1993 and is now sold in over 75 countries. In August 2025, the model reached 100 million units in cumulative global sales.

The current WagonR is built on the fifth-generation Heartect platform. Standard safety features include six airbags, Anti-lock Braking System (ABS) with Electronic Brakeforce Distribution (EBD) and Electronic Stability Program (ESP).

On the inside, it comes with a 7-inch touchscreen infotainment system. Connectivity via Apple CarPlay and Android Auto. Bluetooth and voice command functionality.

The vehicle has been the highest-selling car in India for the previous four financial years.

Hisashi Takeuchi, Managing Director & CEO, Maruti Suzuki India, said, “This achievement is not just a production milestone, but reflects the enduring love and confidence that generations of customers have shown towards brand WagonR. It is rare for a vehicle to receive such acceptance even after 25 years since its launch. The WagonR kept evolving with the introduction of new technology and features over time, while retaining its original DNA. The WagonR has been highly appreciated for aspects like its iconic tall-boy design, spacious interiors and fuel efficiency, which aptly reflect our customers’ needs and expectations. We are deeply grateful for their continued support and remain committed to providing ‘Joy of Mobility’ for generations to come.”

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