New models usually generate excitement in the market and attract people to the showrooms, but automotive analysts said this is unlikely to happen with sedans, which have lost ground to SUVs in India, even as automakers are coming out with facelifts and updates to their existing lineups.
On Friday, Honda launched the new City priced at Rs 11.99 lakh onwards, about two months after Hyundai rolled out the facelifted version of the Verna. Updated versions of the Skoda Slavia and Volkswagen Virtus are expected to follow during the festive season.
Structural Roadblocks
Gaurav Vangaal, associate director, light vehicle forecasting, S&P Global Mobility, said despite new facelifts, it is going to be tough for sedans to make a comeback. “Sales marginally rise for a few months with each new launch/facelift of a midsize sedan – as we saw with the all-new Hyundai Verna in 2023, and the facelift in March – and before that when Skoda introduced the Slavia and Volkswagen launched the Virtus (in 2022), but then they eventually taper. The market has wholly shifted to SUVs, and midsize sedans cater to a few enthusiasts who love driving a sedan, but that’s about it,” he added.
Another analyst echoed this sentiment, pointing to structural shifts in consumer behaviour. “The Indian buyer wants a high driving position, commanding road presence, the ability to go over tall speed breakers unscathed, and the perceived utility that an SUV offers,” he said, adding: “While four fresh sedans in a single year create a lot of noise and draw footfalls, they end up shuffling the existing number of sedan loyalists rather than converting SUV buyers. The segment has hit a ceiling where even heavy facelifts, as seen in the new City on Friday, can only stabilise volumes rather than trigger growth.”
In addition, entry-level buyers, who previously graduated to midsize sedans, are jumping straight to compact or midsize SUVs, and that led to the first major sedan casualty last year when Maruti Suzuki discontinued the Ciaz after its volumes plummeted to just 1,980 units in FY26.
Virtus Anomaly
Yet, amid this SUV onslaught, the Volkswagen Virtus was an outlier, proving that a well-executed sedan can hold its ground. In FY26, while the midsize sedan segment contracted, the Virtus grew by 7.1%, rising from 21,432 units to 22,959 units, and it was India’s largest-selling midsize sedan. In a rare anomaly, the Virtus outsold its own SUV sibling, the Taigun, which managed only 13,702 units despite sharing the same platform and pricing. But the broader numbers present a sobering reality for midsize sedans.
In FY26, the Slavia’s sales dropped by 7.7% to 14,382 units; the City’s sales fell 34.5% to 7,142 units; and Hyundai’s Verna witnessed a massive 36.3% drop down to 9,925 units. The Verna’s facelift launched in March has also failed to lift sales – it sold 694 units in February, the facelift boosted sales to 1,399 units in March, but then its April sales dropped to 865 units.
Collectively, the five midsize sedans accounted for just 56,388 units in FY26. To put that in perspective, a single midsize SUV leader like the Hyundai Creta outsold the entire sedan segment nearly four times over with 201,921 units.
Thus, while these facelifts add premium features to sedans, all they do is keep the existing sedan customers within the segment, instead of adding fresh volumes.
