Are Indian Buyers Finally Ready for Premium MPVs? A Look at the Market Shift

For years, the Indian car market has been dominated by value-driven choices, with MPVs largely seen as functional family shuttles rather than status purchases. But that perception is rapidly changing. A growing set of buyers is now willing to spend significantly more for comfort-loaded, feature-rich premium MPVs — a trend that signals not just rising incomes but a maturing automotive mindset in India.

Also Read: EV Adoption in India: Why Rural Buyers Face Bigger Challenges in Going Electric

A Market Moving Toward Premium Experiences

One of the clearest signals of this shift comes from a recent Grant Thornton Bharat survey, which found that 85% of respondents were considering premium models, regardless of the body style. This isn’t limited to SUVs anymore — premium MPVs are getting their share of attention, especially from families that prioritise long-distance comfort and flexible seating layouts.

Over the past decade, MPVs were often overshadowed by the aspirational appeal of sedans or SUVs. But buyers today are far more focused on what they actually need. If a vehicle offers superior comfort, low fatigue on highways, and multiple seating options, they’re open to paying more for it.

Comfort Takes Centre Stage

Indian road conditions have made “cabin comfort” more than just a luxury — it has become a necessity. Buyers increasingly want vehicles that feel like a calm, comfortable space amid traffic and broken patches of tarmac.

Premium MPVs cater to this mindset with features such as:

• Ottoman-style reclining captain seats
• Massive legroom
• High seating positions
• Dual sunroofs and enhanced cabin ventilation
• Extra-wide third-row space

These were once limited to luxury brands, but mainstream carmakers have brought them into reachable price brackets.

It’s no surprise that models like the Toyota Innova Hycross, Maruti Suzuki Invicto, and Kia Carnival have found an enthusiastic audience among urban families, professionals, and business owners who spend long hours on the road.

A Demand Driven by Lifestyle Changes

Interestingly, even smaller nuclear families are opting for 7-seater vehicles — not out of necessity, but for flexibility. Whether it’s accommodating visiting relatives, planning road trips, or needing better luggage space, MPVs naturally fit these evolving lifestyle needs.

The result? The once “niche” premium MPV customer is becoming increasingly mainstream.

Hybrids Rise as the Preferred Choice

The Grant Thornton Bharat study highlights another significant trend shaping MPV demand: hybrid powertrains.

• 40% of respondents prefer hybrids
• Only 17% favour electric vehicles
• Around 34% still prefer petrol

This signals a transitional phase where Indian consumers want greener options, but also want reliability, convenience, and long driving range. Hybrids — especially strong hybrids from Toyota and Maruti Suzuki — are acting as a bridge technology for buyers who aren’t fully confident about EV infrastructure yet.

For premium MPVs, this is a major advantage, as hybrids suit their family-oriented, long-distance usage pattern.

Also Read: SUV Demand in India: Are Young Buyers Really Moving Away from Hatchbacks in 2025?

Manufacturers Expand Their Premium MPV Line-up

Carmakers are taking note of this shift and responding aggressively:

• Toyota has strengthened its MPV presence with the Hycross and luxury-focused Vellfire.
• Kia showcased the next-generation Carnival, aiming directly at buyers wanting “business-class on wheels.”
• MG has brought global MPVs like the Mifa 9 (electric) and is exploring more premium offerings.

Even mass-market players are adding premium touches to their MPVs, as seen with the Invicto’s improved safety, hybrid tech, and premium seating.

Safety Becomes a Priority, Not an Afterthought

Another noticeable evolution is how Indian families now prioritize safety. It’s no longer just about mileage or looks — buyers want strong crash ratings, ADAS features, and robust build quality.

The survey reinforces this: safety has overtaken design and performance as a top decision-making factor. This is why models boasting strong safety credentials — such as the Invicto — are gaining traction in family-oriented MPV segments.

Market Challenges Still Exist

Despite rising interest in premium models, the market isn’t without hurdles. The industry is currently dealing with:

• High inventory levels (7.9 lakh units as of September 2024)
• Weather-related disruptions
• A slowdown during regional elections
• A muted first half of FY25 with only 0.5% growth

Even so, utility vehicles — including SUVs and MPVs — continue to dominate, accounting for 65% of passenger vehicle sales.

With the festive season historically driving 30–40% of annual sales, manufacturers are expected to rely heavily on discounts to convert demand into actual purchases. Nearly 90% of buyers expect festive offers, according to the survey.

Subscription Models Gain Popularity

Another subtle but important trend is the growing acceptance of vehicle subscription plans. As buyers become more open to trying new body styles and technologies, flexible ownership models are gaining momentum — especially in the premium segment.

Conclusion: India Is Entering Its Premium MPVs Era

Indian buyers are no longer viewing MPVs as purely practical people movers. They are embracing them as premium, comfort-oriented lifestyle vehicles. Backed by rising incomes, stronger safety awareness, and a preference for hybrid technology, premium MPVs are emerging as a compelling choice for modern families.

While mass-market models like the Maruti Ertiga will always dominate volumes, there is a clear — and fast-growing — customer base looking beyond basic utility. For automakers, this shift marks a golden opportunity to establish leadership in what could become one of the most exciting segments of India’s passenger vehicle market.

Also Read: EV Adoption in Tier-2 Cities: India’s New Electric Mobility Boom (2025–26)