After the Punch humbled every car in India by becoming the country’s top-selling model in 2024, another Tata car is punching above its weight.
Sales data sourced from the Society of Indian Automobile Manufacturers shows that the Nexon was India’s top-selling model in five months of the last six.
The surge in sales started in September 2025, when the Nexon (22,573 units) outsold Maruti Suzuki Dzire (20,038) and Hyundai Creta (18,861). It continued its dominance in October (22,083) and November (22,434), but lost the position to Maruti Suzuki Baleno (22,108 units) in December.
From January 2026 onwards, the Nexon reclaimed the top position by selling 23,365 units, and stayed on the top in February (19,430 units).
Automotive analysts shared with FE the reasons why this sub-4 metre compact SUV saw sudden demand September onwards.
GST Catalyst
Gaurav Vangaal, associate director, Light Vehicle Forecasting, S&P Global Mobility, said that the September surge is a textbook example of how a fiscal catalyst can trigger a sales boom when aligned with proper portfolio management. “GST 2.0 reduced taxes on compact cars and SUVs from 28% to 18%, allowing Tata Motors to capitalise on latent demand during the festive season,” he said.
“Because Tata’s volumes are heavily concentrated in the Nexon and Punch – rather than the broad-based distribution seen at Maruti Suzuki – the impact of this tax rationalisation was magnified in these two models, and more towards the Nexon because the Punch facelift was due in January 2026, and the prospective Punch buyers possibly delayed their purchase to early 2026.”
Fueling Success
Another reason is that the Nexon is the only car in India that is available in all fuel types – petrol, diesel, electric, and CNG. “The Nexon is unique because it caters to every kind of buyer – from the long-distance traveller who would prefer a diesel, to an eco-conscious buyer who would prefer an EV or CNG, or a city commuter on a budget who would prefer a petrol – and that is its biggest USP in the crowded sub-4 metre SUV space,” an analyst told FE.
Prior to September 2025, the Nexon – while it enjoyed decent demand – was in the 5-10 rank band. For instance, in April 2025 it was at the sixth position, in May at the tenth position, in June at the eighth position, in July at the ninth position, and in August at the fifth position.
Vivek Srivatsa, chief commercial officer, Tata Passenger Electric Mobility, touched upon the safety argument, and told FE that the Nexon resonates strongly with Indian customers because it offers a well-rounded package of design, performance, safety, and premium features.
“Since its debut in 2017, the Nexon has helped redefine the SUV segment with bold styling and strong performance, while playing a pivotal role in bringing vehicle safety to the forefront,” he said. “It was the first Indian car to receive a 5-star safety rating from the Global NCAP, setting a benchmark for the industry to follow. Over time, we have strengthened the proposition further with its new design, multiple powertrain options across ICE and electric offerings, along with segment-leading features that cater to a wide range of lifestyles.”
Although Tata Motors hasn’t confirmed it, sources told FE that the all-new Nexon is scheduled in 2027; the last major upgrade happened in 2023, when it received a new interior, DCA gearbox, and complete front and rear overhaul. The new model is likely to be a heavily-modified version of the X1 platform on which the Nexon was developed back in 2017.
