Mid-Size SUV Market Share Rises to 18.2% in Q1 FY27 as Buyer Demand Grows

Indian car buyers are steadily moving up the price ladder, with mid-size sports utility vehicles capturing a larger share of the domestic passenger vehicle market over the past two years.

Mid-size SUVs, defined as crossovers measuring above four metres in length, accounted for 18.2% of domestic passenger vehicle sales in the first quarter of FY27. This marks an increase from 15% recorded a year earlier and 12.4% two years prior, according to estimates by Kotak Institutional Equities.

In contrast, demand for sub-four-metre compact SUVs has shown a slight moderation. The share of compact SUVs fell to 14.6% in the first quarter of FY27, down from 16.2% in the corresponding period of the previous year and 15.3% in the first quarter of FY25.

Industry analysts attribute the transition to evolving consumer preferences, with vehicle buyers increasingly prioritising larger cabin space, enhanced comfort, and advanced features. For instance, variants equipped with sunroofs have accounted for a significant portion of overall SUV sales volumes for Hyundai.

Commenting on the shifting buying patterns, Poonam Upadhyay, director at Crisil Ratings, noted that the data reflects an ongoing premiumisation trend across the passenger vehicle market, as consumers increasingly opt for higher-value vehicles offering greater versatility and comfort.