The SUV market in India is on a strong growth path in 2025. In the first half of the year, SUV sales have risen by 12%, proving once again that Indian buyers love larger, more practical vehicles.
The demand is especially strong in the under ₹15 lakh category, where middle-class families are choosing compact and mid-size SUVs for their blend of style, space, and affordability.
Why SUVs Are Dominating in 2025
Indian car buyers are becoming more brand-conscious and feature-focused. SUVs offer a higher driving position, rugged looks, and spacious cabins.
Rising disposable incomes and better financing options are also fueling demand. At the same time, manufacturers are packing advanced features like connected tech, large touchscreens, and ADAS into budget-friendly SUVs, making them more attractive than sedans or hatchbacks.
Growth of the SUV Segment
Industry reports confirm that SUVs now account for more than 50% of passenger car sales in India. This is a massive shift compared to a decade ago when hatchbacks were dominant.
In 2025, compact SUVs and entry-level midsize SUVs under ₹15 lakh are leading this charge. The combination of affordability and premium features makes them an unbeatable choice.
Top SUVs Under ₹15 Lakh in 2025
Several models are performing exceptionally well this year.
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Hyundai Creta: A consistent bestseller, now available with new tech upgrades and strong resale value.
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Maruti Suzuki Grand Vitara: Affordable hybrid options have made it popular among eco-conscious buyers.
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Kia Seltos: Stylish design, wide variants, and a balance of performance and features.
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Tata Nexon: Known for safety and electric variant availability, Nexon remains a family favorite.
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Mahindra XUV300: Compact yet powerful, it appeals to urban buyers who want performance at a lower cost.
These models are dominating sales charts and together account for a major share of the SUV market in India.
Buyer Preferences in 2025
Most buyers in this segment are young professionals and families. They want vehicles that combine status, comfort, and practicality.
Fuel efficiency is still a key factor, but technology and safety features now influence decisions equally. Features like 360-degree cameras, wireless Android Auto/Apple CarPlay, and six airbags are pushing sales further.
SUVs also appeal to Indian buyers because they are suitable for both city commutes and long highway trips.
Regional Trends in SUV Sales
Metro cities like Delhi, Mumbai, and Bengaluru continue to drive the highest SUV sales. However, Tier-2 and Tier-3 cities are catching up quickly.
Easy availability of finance and increasing road infrastructure in smaller towns are contributing to this growth. Car makers are now launching region-specific variants to capture these expanding markets.
Market Challenges for SUVs
Despite strong demand, the segment faces some challenges. Rising costs of raw materials are pushing up prices. This makes affordability a concern, even in the budget SUV category.
Fuel costs are another issue. While hybrids and EV options are emerging, petrol SUVs still dominate, and their running costs can be high.
Competition is also intense. With almost every manufacturer offering multiple SUV models, standing out in the market is becoming difficult.
Impact of EV and Hybrid SUVs
The launch of hybrid and electric SUVs is changing market dynamics. Maruti and Toyota hybrids under ₹15 lakh are drawing attention from cost-conscious buyers.
At the same time, Tata is leading the budget EV SUV market with the Nexon EV, which has become popular in urban centers. These alternatives are adding variety to the SUV segment in 2025.
Future of SUV Sales in India
Analysts believe SUV sales will continue to grow through the rest of 2025. With festive season launches around the corner, demand is expected to rise further.
By 2026, SUVs may account for nearly 60% of total passenger vehicle sales in India. This growth will be driven mainly by compact SUVs, hybrid variants, and more EV options.
For now, the under ₹15 lakh SUV category remains the strongest driver of volume in the Indian auto industry.
FAQs
How much have SUV sales grown in India in 2025?
SUV sales have grown by 12% in the first half of 2025 compared to last year.
Which are the best-selling SUVs under ₹15 lakh?
Hyundai Creta, Maruti Grand Vitara, Kia Seltos, Tata Nexon, and Mahindra XUV300 are leading the charts.
Why are SUVs popular among Indian buyers?
They offer more space, higher seating, rugged looks, and advanced features, making them more practical than sedans.
Are affordable hybrid SUVs available in India?
Yes. Brands like Maruti and Toyota now offer hybrid options under ₹15 lakh.
Will SUV sales continue to rise in India?
Yes. Analysts expect SUVs to make up 60% of passenger car sales in India by 2026.