India's utility vehicle market is booming, driven by strong consumer demand and a festive season surge, with models like the Tata Nexon, Hyundai Creta, Mahindra Scorpio, Maruti Fronx, and Tata Punch leading the charge. The Indian automotive industry grew by 19 percent to 10.22 trillion rupees in fiscal year 2024, largely due to robust growth in the utility and sports utility vehicle segment. Utility vehicles, including SUVs and Multi-Purpose Vehicles (MPVs), now command a significant 64 percent share of the overall passenger vehicle market in calendar year 2024, up from 57 percent in 2023.^[1][2][3] Recent adjustments to the Goods and Services Tax (GST) structure, effective September 22, 2025, are also reshaping the market, potentially making some larger SUVs more affordable.^[4][5] ### SUV Models Drive Unprecedented Growth The five prominent SUV models—Tata Nexon, Hyundai Creta, Mahindra Scorpio, Maruti Fronx, and Tata Punch—have each demonstrated remarkable performance, contributing significantly to the segment's expansion. The Tata Punch emerged as India's best-selling car across all segments in calendar year 2024, selling over 202,025 units. Thi^[6][7][8][2]s micro-SUV even surpassed its larger sibling, the Nexon, which had held the top spot for three consecutive years. The^[6] Punch achieved a significant milestone by reaching 600,000 units in production in under four years by July 2025. In ^[9]September 2025, Tata Punch sales grew by 16 percent year-on-year, with 15,891 units sold. The^[10] Punch’s success is attributed to its versatile offerings, including petrol, electric, and CNG models, alongside a 5-star Global NCAP safety rating. The ^[11][10]Tata Nexon, despite being overtaken by the Punch in overall car sales for 2024, maintained its position as India's best-selling utility vehicle for the third fiscal year in a row in FY24, selling 171,697 units. The N^[12][11][13]exon also crossed seven lakh units in cumulative sales since its debut in 2017. In Se^[11][13]ptember 2025, the Nexon saw a substantial 96.8 percent year-on-year growth, with sales reaching 22,573 units. Its a^[14]vailability with petrol, diesel, and electric powertrains, including an EV variant that contributed 12 percent to its total sales in FY23-24, appeals to a wide range of buyers. Hyun^[11][13]dai's Creta continues to dominate the midsize SUV segment. It recorded a remarkable 186,919 units sold in calendar year 2024, representing 31 percent of Hyundai's total sales in India. The n^{[15][6][16][2]}ew-generation Creta quickly reached the 100,000-unit sales mark within six months of its 2024 launch, making it the fastest SUV in its segment to achieve this feat. Month^[15]ly sales for the Creta consistently exceed 15,500 units. In Oc^[15][16]tober 2024, Creta alone sold 17,497 units, contributing to Hyundai's highest-ever monthly SUV sales of 37,902 units. Hyund^[17]ai's SUV portfolio as a whole contributed an impressive 67.6 percent to its domestic sales in 2024. Mahi^[16]ndra's Scorpio, encompassing both the Scorpio N and Scorpio Classic models, emerged as the brand's best-selling SUV in 2024. Betwe^[18]en January and November 2024, the Scorpio twins sold 154,169 units, making up 32 percent of Mahindra's total dispatches. Month^[18]ly figures remain strong, with 12,704 units sold in November 2024, showing a 4 percent year-on-year growth. Diese^[19]l variants accounted for 92 percent of Scorpio sales in May 2024, which totaled 13,717 units. The S^[20]corpio's robust build and diverse variants cater to varied customer needs, contributing to its consistent popularity. Maru^[19]ti Fronx, a compact SUV from Maruti Suzuki's premium Nexa outlets, has rapidly gained traction. It surpassed the 200,000-unit sales milestone by mid-September 2024, achieving this in just 17 months, making it the fastest Nexa SUV to reach this mark. The F^[21]ronx sold 134,735 units in fiscal year 2024, averaging 11,228 units monthly. In Au^[21]gust 2025, the Fronx recorded 12,422 units sold, a slight year-on-year growth of 0.3 percent. Its s^[22]trong performance positions it as a key growth driver for Maruti Suzuki in the utility vehicle segment. ### ^[21]Festive Season Fuels Market Momentum The Indian automotive market experienced a significant boost during the festive season of October 2024. Record-breaking car and SUV sales were reported, fueled by strong consumer sentiment and increased footfalls across dealerships. Hyund^[23]ai Motor India specifically noted a strong demand for its SUV portfolio during this period, leading to its highest-ever monthly SUV sales. Mahin^[17]dra also achieved its best-ever monthly sales in October 2024, dispatching 54,504 units, marking a 25 percent increase. This ^[18]festive fervor traditionally drives higher purchases as consumers look to make significant investments during auspicious times, contributing to the overall market upswing. ### ^[23]GST Changes Reshape SUV Affordability Recent changes in the Goods and Services Tax (GST) structure, which became effective on September 22, 2025, are set to impact SUV prices in India. Under the revised tax slabs, small cars (petrol, LPG, or CNG with engines below 1200cc and under 4000mm length, or diesel with engines below 1500cc and under 4000mm length) now attract an 18 percent GST, down from 28 percent. Conve^[5]rsely, luxury cars and larger hybrids, falling outside these "small car" criteria, now face a 40 percent GST rate, with the removal of the additional compensation cess. This^[4][5] adjustment means that large SUVs, typically over 4 meters in length, could see a price reduction of up to 10 percent. Model^[4]s like the Mahindra Scorpio N and Tata Nexon are specifically anticipated to become more affordable under this new tax structure. The c^[24]hange also affects the cost of parts and components, which have moved to a 5 percent GST slab from the previous 12 percent, potentially lowering overall production costs and further benefiting consumers through reduced ex-showroom and on-road prices. ### ^[4]Shifting Consumer Preferences and Future Outlook The sustained demand for SUVs reflects a significant shift in Indian consumer preferences. Buyers increasingly favor these vehicles for their perceived safety, spaciousness, versatility, and commanding road presence. Highe^{[25][26][27][28][29]}r ground clearance is a crucial factor, given varying Indian road conditions, allowing SUVs to navigate potholes and uneven terrains more easily than smaller cars. Moder^[25][27][28]n SUVs also offer feature-rich cabins, advanced technology, and a strong aspirational value, appealing to a growing middle class. The ^[27][28][29]Indian SUV market, valued at $18.13 billion in 2024, is projected to grow to $33.85 billion by 2030, with a compound annual growth rate of 10.97 percent. This ^[26]growth is further supported by government incentives for electric and hybrid vehicles, leading manufacturers to expand their EV offerings, such as the Tata Nexon EV and Punch EV. The a^[11][26]utomotive industry is also witnessing increased demand from rural markets, where SUVs are becoming a preferred choice. Exper^[30][31]ts predict that this robust demand, coupled with strategic product launches and evolving tax policies, will continue to fuel the expansion of India's SUV segment. The ^[32][29]strong performance of key models like the Nexon, Creta, Scorpio, Fronx, and Punch, combined with favorable market conditions and recent tax adjustments, positions the SUV segment as the primary growth engine for the Indian automotive industry.