European car brands lose market share in growing Indian SUV market

The Indian passenger vehicle market has experienced significant growth, rising from approximately 38.90 lakh units in FY23 to 46.43 lakh units in FY26. Despite this 19% expansion, European mass-market brands including Skoda, Volkswagen, Renault, and Citroen have seen their combined market share decline from 4.67% to 3.55%.

This decline is largely attributed to the dominance of the SUV segment. Compact SUVs accounted for roughly 44.76% of SUV sales and 25.39% of the total passenger vehicle market in FY26. While brands like Tata, Maruti Suzuki, and Hyundai maintain high volumes in this category, European manufacturers struggle to match their scale. For instance, the Skoda Kylaq recorded 15,289 units in the April-July FY27 period, significantly trailing the Tata Nexon at 73,032 units.

In the competitive compact SUV landscape, boot space remains a key consumer priority. Models such as the Skoda Kylaq (446 liters), Kia Syros (390 liters), Tata Nexon (382 liters), Hyundai Venue (375 liters), and Mahindra XUV 3XO (364 liters) are prominent options for buyers seeking utility and performance.