E-Paper
The steady slide of India’s sedan market
India’s sedan market has shrunk sharply as buyers shift to feature-rich, high-ground-clearance SUVs. Once-dominant models record their lowest sales in years.
For decades, sedans commanded a place of pride on Indian roads. From the trusted Ambassador and elegant Esteem to the aspirational Honda City, the sedan was synonymous with comfort, status, and long-distance refinement. But over the past five years, this once-dominant segment has witnessed a sharp decline. The segment's market share slipped from nearly a fifth of India’s passenger vehicle sales to a single-digit niche.
According to industry data, sedans’ share of total passenger vehicle (PV) sales has dropped from ~19% in FY 19 to around 8-9% in FY 25. This structural shift reflects how rapidly consumer preferences are moving away from traditional sedans in favor of SUVs.
Sharp Model-Wise Declines
Several marquee sedans have seen steep year-over-year (YoY) volume losses:
- Honda City, once a segment leader, recorded only 10,901 units in FY 25, down 35% from previous years.
- Hyundai Verna dropped by nearly 48%, with just 15,593 units sold in FY 25.
- Maruti Suzuki Ciaz slid 19% to 8,402 units in FY 25.
In the mid-size (C-segment) sedan bracket for FY 24, too, traditional players struggled:
- The Honda City’s sales plunged from 35,038 units in FY 23 to 16,925 in FY 24, a drop of 51.7%.
- The Ciaz fell from 13,610 (FY 23) to 10,337 units in FY 24, slipping 24%.
Meanwhile, two sedans bucked the trend: the Hyundai Verna climbed 51.8% YoY to 30,017 units, and the Volkswagen Virtus rose 19.8% to 21,094 units.
But even these “winners” face headwinds, for the first seven months of 2025, sedan sales fell by 12% to 37,575 units. Notably, Volkswagen Virtus (12,455 units) and Maruti Ciaz (4,521 units) were the only models showing growth in that period.
Overall Segment Shrinkage
In FY 25, the total domestic sedan volume fell to 341,093 units, down from 380,136 units in FY 24, a decline of 10.3%. According to SIAM (the Society of Indian Automobile Manufacturers), the share of sedans in all PV sales fell to ~9% in FY 25.
This downturn is not just about falling volumes; it’s also about where the growth in PV sales is coming from. SUVs and MPVs have surged: in FY 25, their combined volumes reached 2.79 million units, marking an 11% YoY increase. This shift highlights where both consumers and manufacturers are placing their bets.
Why the Decline?
SUV Preference: The dominant factor is the growing preference for SUVs. These vehicles offer a higher driving position, more perceived ruggedness, and better road presence than sedans, in addition to that, they get features Indian buyers increasingly prioritize.
Limited New Sedan Launches: Automakers have slowed down investment in new sedans. With fewer model refreshes, the segment lacks fresh appeal. Even in FY 25, major launches were limited, only a new-gen Maruti Dzire and a facelifted Honda Amaze surfaced.
Flagship sedans are bleeding sales primarily because buyers are simply shifting to their SUV cousins.
Luxury Segment Is an Exception
Interestingly, luxury sedans haven’t declined as sharply. For BMW, Audi, and Mercedes, sedans still contribute ~40% of domestic sales, down from ~50% a few years ago. These vehicles serve a different buyer base, often chauffeur-driven or comfort-focused—making them more resilient even as mass-market sedans shrink.
Data clearly shows that India’s sedan market is not just slowing, it’s contracting. With volumes halved for many mainstream models, and segment share dropping sharply, sedans are rapidly shifting from mass-market vehicles to niche offerings. Unless automakers reinvest heavily or deliver fresh, compelling models, the sedan’s role in India’s automotive story may continue to recede.
