Indian passenger vehicle market which has been traditionally known for being dominated by small cars has witnessed a dramatic shift in consumer preference over the last couple of years. Instead of small practical hatchbacks, consumers have inclined towards larger and boxy SUVs. In fact, the SUV segment in the Indian passenger vehicle market has seen its market share grow from 40.1 per cent in 2022 to 50.4 per cent in 2024.

The ascendancy of SUVs is not exclusive to the Indian market but a global phenomenon. In the last few years, SUVs have grabbed the leading position in global passenger vehicle market and India is just a part of that. Also, the rapid growth of SUVs has resulted in a shrinking market share of sedans and small cars worldwide. This is the reason why traditional small car giants like Maruti Suzuki have started focusing aggressively on SUVs. Also, this is the reason why car manufacturers who have always shown their distaste towards boxy SUVs, have started jumping on the bandwagon so enthusiastically in recent years.

Name the ultra-luxury and niche car marques like Bentley, Rolls-Royce, Lamborghini, Ferrari, Maserati etc. All of these carmakers used to shy away from making boxy SUVs stating that they are not classy enough. However, over the last couple of years, their sentiment too shifted dramatically, keeping pace with the consumer preference. As a result, both in the mass-market and luxury segments, SUVs are flooding the passenger vehicle market in India as well as in the international market.

SUVs are becoming the preferred choice of a large swathe of the Indian automotive consumer. The reason is not just one, but many. Here is a comprehensive look from a product and a car buyer's perspective on why SUVs are becoming increasingly popular in India.

Satisfying consumers' aspirations

When SUVs started their journey in the Indian market, they were placed at the higher price brackets in the country's PV market. However, in the last few years and with the rise of compact SUVs, they have become affordable for mass-market buyers. Blend it with the increasing levels of disposable income and tightening consumer aspirations, and Indian car buyers are showing greater interest in purchasing SUVs instead of mundane small cars. The SUVs with their bigger sizes and imposing road presence often stand out in the crowd, which satisfies the aspiration of an owner.

High seating position commands a clear sightline

SUVs come with a higher riding position compared to sedans or small cars. This is a boon for any driver who wants to have a better commanding view of the road ahead while driving. Also, the higher riding stance means better control over rugged roads or where there is no road at all. The better visibility and better command over the road are among the key reasons why many people prefer SUVs over small cars or sedans.

Rugged and bigger is better

SUVs come with a boxy, rugged and bigger look than their sedan and hatchback siblings. Many Indian car buyers love to have a vehicle that is flashy and has a commanding road presence. The butch-looking SUVs give them that opportunity. The strong look of these vehicles often comes paired with a better safety quotient than smaller cars. Besides the advanced technology-aided features, the robust build quality also plays a key role in enhancing overall vehicle safety. It is a common perception among many consumers that SUVs offer better safety than their smaller siblings.

A bigger car means more space

A bigger car means more space inside the cabin. More space means a more comfortable seating experience, especially during long journeys. With the significantly improved road infrastructure, higher disposable income and urge to travel, many consumers prefer SUVs as these vehicles offer them a comfortable journey experience over the smaller models.

Go anywhere capability

While it may not be true for all the SUVs it is true for some SUVs for sure. SUVs offer drivers the capability to tackle rough roads in a much better manner than small hatchbacks or sedans, thanks to better ground clearance. The mid-range or high-end SUVs generally come with a four-wheel drive system, which makes them useful on rough roads, where better traction is required. The smaller SUVs, commonly known as compact SUVs usually come with higher ground clearance but lack the four-wheel drive system.

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