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Death of the sedan, once the symbol of middle-class aspiration. Long live the bulkier SUV

As the automobile industry began undergoing a tectonic move towards electric vehicles, another transformation reshaped the market – customer preferences

Representational image. Shutterstock

Paran Balakrishnan
Published 07.11.25, 10:38 AM

Remember the old family sedan that had four doors and a capacious boot that could take two or three suitcases? Forget about them. They’re yesterday’s personal vehicles.

Next time you want to upgrade, it’s far more likely to be into a tall, square-looking SUV. That stands for sports utility vehicle, in case you’ve forgotten, designed to glide along Gadkari-made super-silky highways and, at least in theory, handle rougher terrain.

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In practice, of course, hardly anyone actually takes their SUV off the highway, but the idea that they could remains part of the appeal.

What, then, has become of yesterday’s sedans – the cars that once ruled Indian roads and were the default family choice for decades? The statistics tell a grim, near-death story.

Star automobile journalist Hormazd Sorabjee puts sedan sales at around 10 per cent of the total market. Saharsh Damani, CEO of the Federation of Automobile Dealers Associations (FADA), reckons sedans now account for only between 10 and 15 per cent. Says Damani: “Sedans are a declining category in India now. Sales volumes are very low.”

As the industry began undergoing a tectonic move towards electric vehicles, another transformation reshaped the market – customer preferences. The shift began about a decade ago as Indian buyers, influenced by global trends and changing lifestyles, gravitated towards taller, more imposing vehicles that offered better ground clearance and a sense of status.

Automakers responded quickly, or, in some cases, not quickly enough.

Says Damani: "SUVs generally offer good height. They also run well where roads are not built properly. And they're generally more spacious and give you a feeling that you're the king of the road." Damani reckons SUVs now have around a 65 per cent share of the market.

A report by JATO Dynamics adds that the appeal of SUVs lies in “a combination of design, flexibility and perceived power.” Sedans, it notes, “lost ground because their traditional advantages – boot space and comfort – are no longer decisive factors for younger buyers who prioritise image and versatility.”

Also crucially, a larger SUV can seat seven while a sedan can only seat five at most.

To confirm this dismal diagnosis, start by stepping into a Mahindra & Mahindra showroom. If you’re looking for a sedan, don’t bother going too far in. Mahindra made a conscious decision several years ago to stick with SUVs, MPVs and other people carriers – vehicles that were accelerating in popularity and grabbing a larger and larger chunk of the market. It has never had to doubt that it made the right call.

In October, Mahindra sold an impressive 71,624 utility vehicles, up by 31 per cent from October 2024. Says Nalinikanth Gollagunta, CEO of M&M’s Automotive Division: “That’s the highest SUV sales we have clocked in a month.”

It’s the same story at Hyundai Motor India, where SUVs are muscling the company’s stylish sedans off the road. In the April-June quarter of 2025-26, the company announced that 66 per cent of its vehicles sold were SUVs. By October, that share had climbed to 71 per cent. The popular Creta has been the star performer, anchoring Hyundai’s rise in the segment.

Or take a walk through a Maruti Suzuki showroom. India’s top automobile producer made its name with small hatchbacks and once commanded over 50 per cent of the market. Its share has now slipped to a still-impressive 40 per cent, but one reason for the decline is that it hit a go-slow road sign when moving into SUVs.

Unsurprisingly, it’s a different story at Tata Motors, which now offers everything from sub-compact SUVs to larger models but no sedans.

For years, Maruti Suzuki was cautious about venturing into bigger cars and SUVs. Says Autocar: “Maruti Suzuki lost ground during India’s SUV boom as Hyundai, Tata Motors and Mahindra grew faster with new launches.”

Now, India’s largest automaker is trying to make up for lost time. The company has announced an ambitious plan to launch nine new SUVs and MPVs by 2028 – a mix of electric, hybrid, CNG and petrol models. Some will be smaller sub-4-metre vehicles while others will be larger three-row versions designed to compete directly with rivals.

“We remain committed to achieving a 50 per cent market share and becoming number one in electric vehicle production, sales and exports,” Toshihiro Suzuki, the company president, told reporters at the Japan Mobility Show 2025.

Maruti Suzuki certainly didn’t have much luck with its larger sedans. There was the SX4, the Baleno and the Ciaz. The Baleno, though a good car, found itself up against stiff competition from more prestigious offerings like the Honda City. It was eventually withdrawn and reborn as a hatchback sold under the company’s more upmarket Nexa label.

Now, the Ciaz too has been pulled off the road. Maruti still sells the highly successful Dzire, which it describes as a compact sedan, though it’s arguably more of a hatchback with a boot.

“Mass-market sedan sales in FY2025 recorded a steep decline, with only Maruti Dzire and Volkswagen Virtus having marginal gains,” says CarDekho in a financial year 2025 report.

“The death of the sedan is not just about form factor. It’s about function and aspiration,” says Puneet Gupta, director of S&P Global Mobility. “Buyers in India now want versatility and technology, not just a smooth ride. The sedan doesn’t fit that picture anymore.”

Don’t think India is alone in switching to SUVs and abandoning sedans by the wayside. Across the world, the same trend is playing out. In the US, for instance, the market is firmly dominated by SUVs and pick-up trucks – the bigger, the better. The top slot in the American sales charts is held by the Ford F-Series, a gigantic pick-up truck that outsells all its competitors by a wide margin.

Even Toyota, once synonymous with sedans like the Camry and Corolla, has shifted gears. A Toyota executive told Reuters earlier this year: “SUVs and crossovers have become the global default. Customers want vehicles that feel big and powerful but are still city-friendly. That’s hard for sedans to deliver.”

To be sure, there are still sedans on the market, but they now come with a hefty price tag. If you’re in the market for a Mercedes-Benz, BMW or Audi, you’ll still be spoilt for choice. Yet even these luxury carmakers are turning their attention to the fast-growing SUV and MPV segments.

Even Rolls-Royce, the pinnacle of luxury motoring, has succumbed to the SUV trend with the Cullinan, unmistakably a Rolls even if it’s a bulkier, more imposing version. It can be yours for around Rs 10 crore.

A few industry observers believe the sedan could yet see a limited revival, especially as EV technology advances. “The sedan’s aerodynamics make it more efficient for electric powertrains,” says Rajesh Jejurikar of Mahindra Group. “That could open a small window for a comeback, though it won’t challenge SUVs in scale.”

Still, as Gupta of S&P Global puts it bluntly: “For now, the sedan is a niche product in a world that has fallen in love with the SUV silhouette.”

The SUV has clearly become the vehicle of choice for a new generation of Indian buyers: taller, tougher-looking and status-laden, the family sedan is speeding away in the rear-view mirror.

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