Entry-level sedans gain traction while midsized models continue to struggle

Entry sedans' PV share rose to 7.1% in Jan-Aug 2026, supported by CNG demand and lower ownership costs, while midsize sedans slipped to 0.9%

The market for sedans in India is increasingly showing two distinct trends: Affordable entry sedans gaining share even as buyers move away from sedans as they climb the price ladder.

 

Entry sedans accounted for 7.1 per cent of passenger-vehicle (PV) sales in January-August this year. This is up from 6.2 per cent in 2024 and 7 per cent in 2025, according to the data from market intelligence firm JATO Dynamics.

 

In contrast, the share of midsize sedans nearly halved from 1.7 per cent in 2024 to 0.9 per cent in the first eight months this year, having slipped to 1.3 per cent in 2025.

 

Entry-sedan volumes rose 18.9 per cent to 322,375 units in 2025 from 271,082 units in 2024. During January-August 2026, the segment clocked sales of 252,110 units, the JATO data showed. Entry sedans such as the Dzire, Aura, Amaze and Tigor broadly operate at the affordable end of the PV market, with prices starting at around ₹6 lakh and extending beyond ₹10 lakh, depending on the model and variant.

 

Midsize sedans such as Hyundai’s Verna, Honda’s City, Volkswagen’s Virtus, and Skoda’s Slavia typically occupy a higher price band, competing with a much wider choice of compact and midsize sport utility vehicles (SUVs).

 

The entry segment, however, is heavily concentrated around Maruti Suzuki’s Dzire. The model accounted for 66.8 per cent of entry-sedan sales during January-August, selling 168,413 units. Its share rose from 62 per cent in 2024 and 66.5 per cent in 2025.

 

Hyundai’s Aura was the second-largest model with 49,517 units and a 19.6 per cent share, followed by Honda’s Amaze at 26,676 units, or 10.6 per cent. Tata Motors’ Tigor sold 7,504 units, with its share falling to 3 per cent from 6.4 per cent in 2024.

 

The segment is also seeing fresh product action. Maruti Suzuki introduced the fourth-generation Dzire in November 2024, while Tata Motors is set to launch on September 25 the Aeris, a substantially refreshed Tigor that will carry a new name.

 

“At the affordable end, sedans still make a strong practical case on purchase price, running costs, passenger comfort and the advantage of a separate boot. For some buyers, particularly in the cab segment, the car is also a tool of trade, so earning potential and ownership economics matter,” said Ravi Bhatia, president, JATO Dynamics.

 

“For families too, an entry sedan can offer the feeling of a complete car within a budget. Many of these cars are also fitted with compressed natural gas (CNG), where having usable boot space is important. As budgets rise, however, buyers tend to place a greater value on the road presence, a higher seating position and SUV styling. At that end of the market, a sedan needs a more compelling reason to be chosen,” he added.

 

Dealers see a similar pattern. “CNG is a big part of the demand for compact sedans, particularly among customers with high daily running. Cab operators look closely at fuel and ownership costs, but there are private buyers making the same calculation. The sedan also gives them comfortable rear seating and a separate boot at an affordable price,” a Mumbai-based automobile dealer said.

 

The importance of CNG is also visible in the model-level data released by Hyundai. CNG accounted for 95 per cent of Aura sales in the first quarter of FY27, the company had said in July, while CNG’s contribution to Hyundai’s sales reached 18 per cent. The contrast becomes sharper further up the market.

 

Midsize sedan sales declined from 72,755 units in 2024 to 60,083 units in 2025, a fall of 17.4 per cent, while sales stood at 32,570 units during January-August 2026.

 

Their share in the PV market fell from 1.7 per cent in 2024 to 1.3 per cent in 2025 and further to 0.9 per cent in January-August 2026, according to JATO.

 

The divergence reflects a changing value proposition across price points. At the affordable end, running costs, CNG availability, passenger comfort, and boot space continue to support the sedan proposition. As budgets increase, sedans compete for buyers who have a wider choice of SUVs offering higher seating positions and a greater road presence.