Archive · 27 Jul 2025
Premium SUVs Surge as Entry-Level Car Sales Decline in India
Imagine that the cars people are buying are changing.
The Hyundai Creta, a fancier SUV, is the most popular car.
It's also becoming more common for people buying a car for the first time to choose these bigger, more expensive models.
Meanwhile, cheaper, small cars aren't selling as well because they cost more, and people don't have as much money to spend on them.
Overall, people are spending money on more expensive cars.
Hyundai Creta is the top-selling car in India in June 2025.
First-time buyers account for a growing portion of Creta sales.
Entry-level car sales are declining due to higher prices and slower income growth.
SUVs and MPVs are experiencing growth while hatchbacks and sedans are losing market share.
The market shows a clear trend towards more expensive, premium cars.
- Who
- Car buyers, car manufacturers, and industry analysts.
- What
- Shift in car buying trends in India towards premium vehicles.
- When
- Sales data analyzed for 2024-2025, specifically June 2025.
- Where
- India
- Why
- Changes in consumer income, aspirations, and preferences towards more expensive vehicles.
- Top Selling Car (June 2025)
- Hyundai Creta
- Segment experiencing growth
- SUVs and MPVs
- Declining Segment
- Entry-level cars
- First-time buyer contribution to Creta sales (2024)
- 29%
- Entry-level car sales FY16
- 934,538 units
- Entry-level car sales FY25
- 25,402 units