Why Indian Buyers Are Shifting Towards SUVs

Posted:

23 July,2026

Updated:

23 July,2026

0 min read

The Indian car market always provided ample options across SUVs, sedans, hatchbacks, and MPVs. However, people are increasingly preferring SUVs. If you explore the FY26 sales figures, you’ll find that SUVs command a massive 56.72% market share, which is expected to reach 60% by FY27.

This growth has left many wondering why SUVs are becoming so popular in India. If you have similar questions, this blog has the answer. It lists the reasons behind SUVs’ growing popularity, the best SUVs for Indian roads, and more.

Why Indian Buyers Are Shifting Towards SUVs

SUVs are currently the most in-demand and popular vehicle segment in India. Take a quick look at the FY26 sales figures and compare them against last year’s performance; you’ll find that more than every second vehicle sold in India was an SUV. According to a market report, SUVs' growing popularity and demand aren’t random. They’re influenced by a combination of –

  • Surging disposable incomes
  • Urbanisation
  • Favourable GST structure for sub-4 metre SUVs
  • OEM localisation
  • Expanded national highway and expressway network

Besides these factors, Indian buyers are also choosing SUVs because they carry an aspirational tag. When SUVs were first launched in India, they were mostly expensive. They were considered a high-end vehicle with premium pricing.

Over the years, the Indian market saw numerous affordable SUVs, making them more accessible to a larger pool of people. However, this accessibility didn’t affect SUVs’ association with luxury. As a result, many people still prefer SUVs over other options.

You can also find people who choose SUVs for their strong build, powerful performance, and commanding road presence. Models with advanced tech & safety features are generally more desirable.
 

Advantages of Buying SUVs in India

If you’re evaluating an SUV vs a sedan or MPV family cars vs SUVs, you may choose an SUV, as it provides the following advantages.

Makes Every Day Driving Less Stressful

If you frequently drive on uneven and rugged roads, SUVs’ high ground clearance and more forgiving suspension can make daily driving smoother. While they aren’t immune to poor roads, they can make your driving feel more relaxed.

Easier to Adapt to Lifestyle Changes

Many people plan to purchase a car for long-term use. Since needs evolve with time, it’s wiser to purchase a car that can accommodate common lifestyle changes. Thankfully, several SUVs are versatile and can handle home-office commutes, long drives with family, and accommodating more passengers.

Better Resale Value

Since SUVs enjoy a consistent demand throughout the year, it’s easier to sell them in the used-car market. If you plan to sell your car after 3-4 years of use for a better model, ensure you keep it in good condition. You may choose SUVs like the Tata Punch, Hyundai Creta, and Mahindra XUV700 if you’re specifically looking for an SUV with good resale value.

Good Balance Between Comfort & Capability

Modern SUVs in India aren’t just designed for uneven and rough road surfaces. You can easily find models that provide car-like comfort in the city and smooth performance on highways. With an SUV, you no longer have to choose between comfort and practicality.
 

The Best SUVs for Indian Roads

The Indian market provides ample SUV options to accommodate diverse buyer preferences. However, the following are the best SUVs for Indian roads.

Best SUVs for Indian Roads Power Torque ARAI Mileage Estimated Ex-showroom Price in New Delhi
Tata Nexon 113.31 bhp 260 Nm 24.08 kmpl ₹7.37 - ₹14.22 Lakh
Hyundai Creta 157.57 bhp 253 Nm 18.4 kmpl ₹10.91 - ₹20.06 Lakh
Maruti Suzuki Brezza 101.64 bhp 136.8 Nm 19.8 kmpl ₹8.26 - ₹13.01 Lakh
Mahindra Scorpio N 172.45 bhp 400 Nm 15.42 kmpl ₹13.49 - ₹24.95 Lakh
Maruti Suzuki Fronx 98.69 bhp 147.6 Nm 20.01 kmpl ₹6.85 - ₹11.98 Lakh
Hyundai Venue 114 bhp 250 Nm 17.9 kmpl ₹8 – ₹15.83 Lakh
Kia Sonet 114 bhp 250 Nm 19 kmpl ₹7.33 – ₹14.09 Lakh

How Suitable an SUV Is for Long-Distance Travel

If you drive in the city, on the highway, and on off-road trails, then an SUV can be one of the most practical vehicle choices. They generally provide more supportive seating, better cabin space, improved ride quality, and higher ground clearance.

It reduces driving fatigue during long-distance travel, making rough stretches less uncomfortable. Since most SUVs in India now provide advanced safety features, ample storage space, and comfort-enhancing connected-car technology, they naturally facilitate convenient, smooth long-distance trips.

If you’re exploring the most popular SUVs in India that you can take on long drives, then explore Hyundai Creta, Mahindra Scorpio N, and Maruti Suzuki Brezza.
 

Maintenance and Running Costs Comparison

Comparing SUVs vs sedans and hatchbacks, or MPV family cars vs SUVs against maintenance and running costs isn’t a smart choice. The estimated maintenance and running costs applied to a particular vehicle category may not necessarily align with model-specific figures.

For example, if you own a hatchback, you might have to pay approximately ₹2,500 to ₹4,500 per year for routine car service or maintenance. For sedans, this cost can be around ₹3,500 to ₹6,500 per year. SUVs may have an annual maintenance cost of ₹5,000 to 9,000 per year.

Category-wise, SUVs may appear to have the highest maintenance cost, but it may not always be the case if you compare model-wise maintenance expenses. For example, a hatchback like the Maruti Suzuki Baleno has an estimated maintenance cost of ₹5,600 per year, while SUVs like the Nissan Magnite have a lower maintenance cost of ₹3,200 per year. Hence, always make comparisons based on shortlisted models instead of relying on category-wise comparison.

Even the running costs vary depending on various factors. If you want to calculate estimated running costs for an SUV, you should factor in how much daily distance the car will travel. The car’s mileage and fuel prices are also key factors that determine the running cost.

If you’re specifically looking for low-maintenance SUVs in India, explore models like the Maruti Suzuki S-Presso, Renault Kwid, and Nissan Magnite. Hyundai Venue and Hyundai Creta are also great options.


Key Factors to Consider Before Buying an SUV

If you’ve decided to purchase your first SUV in India, take enough time to research and find the right model. You can use the following factors to identify the right model.

Evaluate the Driving Conditions

You should choose an SUV that aligns with your regular driving pattern. Not every SUV will perform the same on city roads and highways. Hence, if you’ll be spending most of your time driving on congested city streets with limited parking, consider purchasing a compact SUV rather than a larger model.

Look Beyond the Purchase Price

If you’re currently exploring the best SUVs for Indian roads based on their purchase price, it’s time to look beyond. The purchase price is a one-time investment. However, you’ll have to make recurring payments to keep the car running. Hence, factor in expenses related to insurance, fuel, and routine maintenance. It will help you find a model that’s economically viable for you.

Prioritise Safety & Other Key Aspects

If you want safe driving experiences for your family, choose an SUV based on its crash-test safety rating. You should also prioritise evaluating areas like excellent after-sales support, wider dealership network, and easy availability of spare parts.

Choose the Right Engine & Fuel Type

A car’s engine and fuel type directly influence the car’s performance. They also determine the fuel cost you’ll have to pay every month. Depending on the type of performance you want and the recurring fuel expenses you can comfortably pay, choose from petrol, diesel, or hybrid engine options.

Electric SUVs also deserve your attention for their fuel efficiency. You may choose a hybrid or an EV option if your primary concern is fuel savings. A large petrol engine is better suited for strong highway performance.
 

Are SUVs the Future of the Indian Automobile Market?

The current consumer preferences and market reports clearly indicate that SUVs are indeed the future of the Indian automobile market. India’s SUV market was valued at USD 22.24 billion in 2025 and is expected to reach USD 30.26 billion by 2030.

It represents a 6.35% CAGR, indicating steadily rising market demand. Currently, SUVs command more than half of the car market share, a figure expected to increase to 60% in the coming years. These facts and figures reaffirm SUVs’ promising future in the Indian automobile market.
 

Conclusion

SUVs are currently enjoying a preferential status among Indian buyers for the reasons discussed in this blog. They’re practical, flexible, and effortlessly maintain the right balance of performance and style. If you’ve decided to purchase an SUV this year, ensure you select the right model using the factors shared in this SUV buying guide. Once purchased, don’t forget to protect it under a reliable Car Insurance policy, such as the Comprehensive Car Insurance plan available at Shriram General Insurance.
 

FAQ

1. Which are the most popular SUVs in India?

Hyundai Creta, Mahindra Scorpio, and Maruti Suzuki Brezza are some of the most popular SUVs.

2. Why are SUVs becoming so popular in India?

Much of the popularity is due to the car’s aspirational status, strong performance, and commanding road presence.

3. How much do SUVs cost in India?

SUVs are available across a broader price range in India. The price range is massive, starting from an ex-showroom price of ₹6 Lakh to ₹30 Lakhs and higher.

4. Do SUVs have a better resale value?

Yes, they do. Since SUVs enjoy a preferential status in the car market, you can find a steady demand for SUVs in the used-car market. A well-kept SUV can help you get a profitable resale value.

5. Which type of SUV is best for everyday city driving?

If you spend most of your commute time navigating congested roads and facing stop-and-go traffic, then a compact SUV with an automatic transmission can be the best option.

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