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Compact SUVs Hit Pause: Sales Dip in 2025
18 Jan
Summary
- Compact SUV sales fell 3.1% in 2025 despite market growth.
- Limited new launches in 2026 may extend the segment slowdown.
- Midsize SUVs saw growth as buyers traded up in 2025.
The compact SUV segment in India, a major growth driver post-pandemic, is now entering a period of consolidation. Data reveals a 3.1% decline in sales for these vehicles in 2025, totaling 1,222,837 units, contrasting with a 5% expansion in the overall passenger vehicle market.
Industry experts predict a muted outlook for 2026 due to a scarcity of new models and facelifts. While manufacturers are preparing follow-up products and exploring hybrid and electric options, their impact is expected to be gradual. This follows a significant surge between 2020 and 2024, where compact SUV volumes nearly tripled.
The trend of buyers trading up to midsize SUVs, which grew by 8.9% in 2025, is a key factor. This shift is attributed to rising urban incomes and improved financing accessibility. Consequently, 2026 is anticipated to be a year of stabilization rather than rapid expansion for the compact SUV market.
