Crisis on small vehicles, cars parked in showrooms, customers broke down on SUVs

Customers broke on SUVs

There are many magnificent and strong cars in the Indian market at this time. But in June 2025, the sale of passenger vehicles has been seen exactly the result. While Maruti and Hyundai's cells, the two most cars in the country, saw a decline, the sale of small cars has also seen a decline. Their sales fell by 13% and 12%. On the other hand, SUV-manufacturers like Mahindra, Toyota and MG Motor have seen a tremendous increase. The decrease in demand for small cars has contributed to these declines on a large scale.

India's passenger vehicle market

India's passenger vehicle market, which was once based on small and affordable vehicles, has now turned rapidly towards large utility vehicles like SUV, MPV and crossover. The demand for SUV is continuously increasing not only in petrol-diesel vehicles, but also in the electric segment. The result of this trend is that in June, SUV companies recorded good results, while small cars were shocked. Seven big vehicle manufacturers of the country sold a total of 3 lakh 226 units in June 2025, which is a 7% decline on an annual basis. Three of these top vehicle manufacturers recorded a decline in sales in June.

Maruti's sales decline

Maruti Suzuki, who is the largest car manufacturer in the country. He faced the weakest monthly performance in 18 months. The company's sales have come down from 1.37 lakh units to 1.18 lakh units. Especially, there was a huge decline in sales of small cars such as Alto K10 and S -reso, which fell from 9,395 to 6,414 units. Sales of compact cars like Baleno, Swift, WagonR, Desire etc. have also decreased. Despite models like Brezza and Grand Vitara in the SUV segment, the company faced a decline.

Hyundai motor also has something like this

Hyundai Motor India also recorded a 12% decline. The company's sales have come down from 50,103 units to 44,024 units. Hundai blamed the weak customer trust and global conditions behind it. However, the company is expecting future recovery, especially because of its Talegaon plant.

Tata Motors and Honda

Tata Motors' sales have also declined by 15%. However, the company's EV portfolio which includes Nexon EV, Punch EV and recently launched Harrier EV. Performed better, but the decrease in demand for petrol-diesel models affected the overall performance. The sales of Motors in other companies declined by 3% and Honda Cars India by 22%. Especially Honda's export sales fell by 89%.

Demand for SUV

On the other hand, SUV Specialist Mahindra sold 47,306 units in June with an annual increase of 18% and retained second place. Toyota sold 26,453 units with a slight gain of 3%, while MG Motor recorded a 21% lead and sold a total of 5,829 units. Overall, the domination of the SUV segment in the Indian auto market is increasing, while the falling demand for small cars has become a matter of concern.