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For decades, sedans held pride of place on Indian roads. From the reliable Ambassador and luxurious Esteem to the ambitious Honda City, the sedan was synonymous with comfort, status and long-range sophistication. But over the past five years, this once prominent sector has seen a steep decline. The segment’s market share declined from about one-fifth of India’s passenger vehicle sales to single-digits.
According to industry data, the share of sedans in total passenger vehicle (PV) sales has declined from ~19% in FY20 to around 8-9% in FY25. This structural shift reflects how rapidly consumer preferences are shifting away from traditional sedans in favor of SUVs.
Model-wise sharp decline
Several key sedans have seen huge losses in year-on-year (YoY) volumes:
- Honda City, once the segment leader, recorded only 10,901 units in FY25, down 35% compared to previous years.
- Hyundai Verna sales declined by nearly 48% in FY25, with only 15,593 units sold.
- Maruti Suzuki Ciaz declined 19% to 8,402 units in FY25.
Even in the mid-size (C-segment) sedan bracket for FY24, traditional players struggled:
- Honda City sales declined from 35,038 units in FY23 to 16,925 units in FY24, a decline of 51.7%.
- Ciaz sales fell to 10,337 units in FY24 from 13,610 (FY23), a slip of 24%.
Meanwhile, two sedans reversed the trend: Hyundai Verna rose 51.8% to 30,017 units, and Volkswagen Virtus rose 19.8% to 21,094 units.
But even these “winners” faced headwinds, with sedan sales falling 12% to 37,575 units in the first seven months of 2025. Notably, Volkswagen Virtus (12,455 units) and Maruti Ciaz (4,521 units) were the only models to show growth in that period.
overall volume shrinkage
In FY25, total domestic sedan volumes declined to 341,093 units from 380,136 units in FY24, a decline of 10.3%. According to SIAM (Society of Indian Automobile Manufacturers), the share of sedans in all PV sales fell to ~9% in FY25.
This slowdown is not just about a decline in volumes; It’s also about where the growth in PV sales is coming from. SUVs and MPVs have seen growth: in FY25, their combined volume reached 2.79 million units, a growth of 11% year-on-year. This shift highlights where both consumers and manufacturers are placing their bets.
Why the decline?
SUV Preference: The major factor is the increasing preference for SUVs. These vehicles offer better driving position, more ruggedness and better road presence than sedans, moreover, they get features that Indian buyers increasingly prefer.
Limited new sedan launches: Automakers have slowed down investment in new sedans. With fewer model refreshes, the segment lacks fresh appeal. Even in FY25, major launches were limited, with only a new-generation Maruti Dzire and a facelifted Honda Amaze revealed.
Sales of flagship sedans are declining mainly because buyers are simply turning to their SUV counterparts.
The luxury segment is an exception
Interestingly, the prices of luxury sedans have not declined that rapidly. For BMW, Audi and Mercedes, sedans still contribute ~40% to domestic sales, down from ~50% a few years ago. These vehicles serve a different buyer base, often driver-driven or comfort-focused – making them more flexible, despite being less expensive than mass-market sedans.
The data clearly shows that India’s sedan market is not only slowing down, but shrinking. With volumes of many mainstream models halving and segment share falling sharply, sedans are rapidly shifting from mass-market vehicles to niche offerings. Unless automakers reinvest in a big way or introduce new, attractive models, the role of sedans in India’s automotive story will continue to decline.
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