TL;DR
India's car market is seeing a major shift: premium car sales are rising, and the market share of cars priced below ₹10 lakh has significantly decreased from 80% in 2019 to 52% in 2025.
The Indian car market is undergoing a significant transformation, with a notable shift in consumer preferences towards premium models and away from vehicles priced below ₹10 lakh. Data indicates that the market share for cars under ₹10 lakh drastically fell from 80% in 2019 to 52% in 2025, highlighting evolving buying trends influenced by rising vehicle prices and an increasing demand for more feature-rich and luxurious options.
This trend is reshaping the dynamics of the automotive industry in India, prompting manufacturers to adapt their strategies to cater to the burgeoning premium segment. While the overall passenger vehicle market has shown robust growth, with sales reaching 47.63 lakh units between October 2025 and August 2026, the underlying shift in market share suggests a maturing consumer base with higher disposable incomes and aspirations for upscale vehicles. Utility vehicles, in particular, have been a major growth driver, accounting for 75% of the total increase in sales.
