Archive · 15 Dec 2025
Small Cars Struggle as SUVs Dominate
In India, small cars like the Maruti Alto and Renault Kwid are not selling as well as expected, even after the government reduced taxes.
People are choosing bigger and more expensive SUVs instead.
This is happening even though small carmakers have lowered prices and offered special deals.
There's also a big discussion about rules for car emissions, with some companies wanting special help for small cars, while others think the current rules are fair.
Experts think small cars might make a comeback next year, but it depends on how strict the new emission rules are and how much carmakers invest in them.
Small cars saw only a 3% year-on-year sales growth in October-November, while compact SUVs grew by 17%.
The overall passenger vehicles market grew by 17% to 754,574 units in October-November.
GST was cut from 28% to 18% for cars under 4 meters in length on 3 September.
Maruti Suzuki advocates for more relief for small cars under upcoming emission norms, while Tata Motors supports the existing definition.
Analysts suggest that small cars might see a revival early next fiscal year, depending on pricing and manufacturer commitment.
- Who
- Car manufacturers and buyers in India
- What
- Shift in preference from small cars to SUVs despite GST cuts
- When
- October-November 2023
- Where
- India
- Why
- Buyers prefer bigger, more expensive vehicles; debate over emission norms
- Small Cars Sales Growth
- 3% year-on-year in October-November
- Compact SUVs Sales Growth
- 17% year-on-year in October-November
- Overall Passenger Vehicles Growth
- 17% to 754,574 units in October-November
- GST Cut Date
- 3 September
- GST Cut Details
- From 28% to 18% for cars under 4 meters
- CAFE III Norms Release Date
- 25 September
- Maruti Suzuki's Stance
- Advocates for more relief for small cars
- Tata Motors' Stance
- Supports existing definition of small cars
