India’s SUV segment, which has enjoyed relentless growth for more than a decade, has seen its first slowdown in years. According to ETAuto, SUV sales in June 2025 slipped 2.1% year-on-year to around 1.75 lakh units, marking the first decline since the pandemic. This drop comes after years of double-digit growth, with Q1 FY2026 showing only 5.6% growth – a sharp contrast to previous seasons.
What the Numbers Say
Data from JATO Dynamics indicates that 171,341 mainstream SUVs and 3,660 luxury SUVs were sold in June. This is a steep 19% fall from January’s 2.11 lakh units. The slowdown is attributed to a mix of macro-economic pressures, including IT sector layoffs, global uncertainties, and changing buyer sentiment.
Why SUVs Are Still Here to Stay
Industry experts caution against interpreting this dip as the end of India’s SUV boom. The body style remains highly popular, with its blend of road presence, ground clearance, and practicality. The current drop is more of a correction than a collapse, and upcoming launches are expected to inject fresh enthusiasm into the market.
Upcoming SUV Launches to Watch
Over the next 18 months, a flurry of new models is set to hit showrooms. Tata Motors is preparing to reintroduce the Sierra nameplate, along with the electric Sierra.ev by the end of 2025. Maruti Suzuki is readying a new budget SUV to rival the Hyundai Creta, rumoured to be called the Escudo.
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Mahindra has big plans for 2026, including the next-gen Bolero, facelifts for the Thar and XUV700, and continued expansion of its portfolio. Kia will bring an all-new generation of the Seltos, while Renault has the third-generation Duster and a new three-row SUV in the pipeline. Nissan is expected to launch its own versions of these Renault models.
MPVs on the Rise
Interestingly, while SUV demand has moderated, MPV sales have seen an uptick. This suggests that some buyers may be shifting towards more family-oriented body styles, perhaps influenced by changing needs or price considerations.
Looking Ahead
The coming year will be critical in determining whether June’s numbers were a temporary blip or the start of a broader trend. With multiple high-profile it launches scheduled for 2025 and 2026, the segment could soon return to its upward trajectory. For now, the Indian SUV market remains one of the most competitive and closely watched automotive battlegrounds in the world.
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