???? SUVs: 50%+ of car sales in FY25
???? Small cars: Sales barely grew; fell for Maruti, Tata, Hyundai
The market is skewing upscale
Only 12% of households earn over ₹12L/year
No small car under ₹4L on-road
High taxes and safety rules add to costs
First-time buyers now pick SUVs
???? Two-wheelers grew 7%
???? Used small cars are booming
Value-seeking buyers haven’t vanished
No major design rethink since the Tata Nano
Unlike telecom or FMCG, car pricing hasn’t adapted to lower-income segments
???? Telecom used bundling
✈️ Airlines used dynamic pricing
???? FMCG used sachets
Cars need innovation too—at the entry level
???? Small cars taxed like luxury goods (29–31%)
???? Lower taxes + smarter strategy = revival
India’s car market can’t grow by leaving most households behind