Leading passenger vehicle makers, Maruti Suzuki India and Hyundai Motor India, are steadily losing their grip on the country’s lucrative Sport Utility Vehicle (SUV) segment. While the broader SUV market surged 11% in FY26, crossing the 3.1 million unit mark, both automakers suffered notable market share losses.
Together, Maruti Suzuki and Hyundai ceded 300 basis points of market share in a category that remains the most profitable in the passenger vehicle space. Hyundai’s decline was particularly stark, with its market share falling 1.8 percentage points to 12.9% in FY26 from 14.7% a year earlier. Absolute SUV sales also slipped 2.6% to 399,569 units from 410,199 units in FY25, driven by weaker demand for models like the Creta, Venue, Alcazar, and Tucson. The slowdown highlights Hyundai’s challenge in refreshing its SUV lineup quickly enough to meet evolving consumer expectations.
Maruti Suzuki, meanwhile, managed to grow volumes by 5.7% to 760,987 units, up from 720,186, but its market share dropped 1.2 percentage points to 24.5% from 25.7%. The decline reflected shrinking sales of its key SUV models, including the Brezza, Jimny, and Invicto, even as volume growth helped it retain the leadership position.
Volume Growth
While volume growth helped Maruti maintain its leadership position, Hyundai’s shrinking sales caused it to slip to fourth place in the domestic car market in FY26, down from second in FY25.
Rise of the Challengers
The market share lost by the top two players was absorbed by rivals Mahindra & Mahindra, Tata Motors, Toyota, and Kia, all of which grew faster than the industry average. Mahindra emerged as the biggest beneficiary, driven by strong demand for its electric lineup—Mahindra BE 6, XEV 9e, XEV 9S—as well as continued success of its Scorpio and Thar models.
Mahindra posted a sharp 19.7% jump in volumes, adding over 100,000 units to reach 660,276, and expanded its market share by 1.5 percentage points to 21.3%, narrowing the gap with Maruti and positioning itself as a serious challenger for the top SUV spot.
Tata Motors also consolidated gains, with sales rising 15.1% to 498,052 units, lifting market share to 16%. The automaker’s growth was supported by the facelifted Tata Punch, Sierra, and the latest versions of Harrier and Safari, which helped reinforce its presence across the SUV segment.
Toyota, though starting from a smaller base, delivered the strongest growth, with volumes rising 20.7% to 312,007 units and market share touching 10%. The Japanese automaker continues to strengthen its SUV-focused portfolio, particularly in the premium and hybrid segments.
Kia, part of Hyundai’s broader group, continued to outperform its parent company. The brand’s sales grew 13.3% to 289,035 units, with market share inching up to 9.3%, highlighting growing consumer preference for newer and aggressively positioned models within the same alliance ecosystem.
The FY26 SUV landscape underscores a market in flux, with legacy leaders facing stiff competition from rivals capitalising on electrification, product innovation, and aggressive positioning.
