Over the past six months, at least three foreign carmakers—Hyundai Motor India Ltd, Honda Cars India Ltd and Skoda India—have upgraded their sedan models in a bid to revive sales in a segment that accounts for less than a tenth of India’s car market, which is now dominated by sport utility vehicles (SUVs).
On Tuesday, Skoda unveiled updates to the Slavia and premium Superb sedan slated for a re-entry, with the brand’s top executive telling Mint that a lack of new product action in the segment had contributed to declining consumer interest and that a fresh product could help revive demand.
Hyundai and Honda are also betting that upgrades to their offerings—the Hyundai Verna and the Honda City—will revive segment sales, even as analysts remain sceptical about the prospects given the continued dominance of SUVs.
“If you look at the sedans, perhaps Skoda is one of the largest or one among the very few large automakers who still have a very big sedan portfolio,” Ashish Gupta, brand director at Skoda India, told Mint.
“I do believe that the sedan body style is here to stay. It is also partially due to other automakers pulling back from sedans. So, we continue to believe in the sedan body style that defines our brand, not only in India, but worldwide. And I think there is its own unique space that we will continue to occupy,” he said.
Slavia’s facelift marks the first major update to the car since its February 2022 launch.
Changing lane
It is a contrasting approach to that of homegrown carmakers. Mahindra & Mahindra Ltd has focused exclusively on SUVs, while Tata Motors Passenger Vehicles Ltd sells one sedan, the Tigor, across the passenger and fleet segments.
Maruti Suzuki India Ltd also has just one sedan in its portfolio—the Dzire, which was the highest-selling car in 2025-26, driven by demand from both passengers and cab operators.
In March, Hyundai said it had upgraded the Verna to “reignite” the sedan market. In an earnings call on 8 May, Hyundai India managing director and chief executive Tarun Garg said the model was showing early signs of positive buyer response. The Verna’s last major upgrade was in March 2023.
“With respect to the domestic segment mix, SUVs continue to be the major contributor to our volumes. Notably, hatches and sedans showed growth during the (March) quarter, aided by goods and services tax benefits and our product actions,” Garg said.
Honda Cars India launched an upgraded Honda City in May in hopes of reviving the car's sales and boosting volumes. This facelift came after three years.
“Sedans, we believe, have a very strong relevance to a lot of customers in India, and that's the reason why we have the City,” Kunal Behl, vice president of marketing and sales, said during a press conference in May.
Rumble strip
However, the numbers reveal the challenge facing the sedan segment. According to industry estimates, sedans accounted for just under a tenth of the 4.7-million-unit passenger vehicle market in FY26, down from nearly one-fifth in FY19. Over the same period, SUVs' share more than doubled, rising from about a fourth to over half of the market.
Data from the Society of Indian Automobile Manufacturers (Siam) showed that sales growth of several flagship sedan models lagged the industry’s 9% growth in FY26. Honda’s largest-selling sedan, the Amaze, saw sales rise 0.6% to 32,905 units, while City sales fell 34% to 7,197 units.
Hyundai Verna’s sales fell 36% to 9,925 units in FY26. The cumulative sales of Skoda’s two sedans, Octavia and Slavia, fell 7% to 14,478 units.
Experts say growth in the segment will only return if top carmakers take product actions that introduce meaningful changes to their models.
“Good products can always generate excitement. There was no exciting product in the sedan segment, while there were lots in the SUV segment,” Subhabrata Sengupta, partner at Avalon Consulting, said.
Puneet Gupta, director at Mobility Global, an auto analytics firm, said that given that some leading carmakers are not currently competing in the sedan segment, there is a clear opportunity for others to gain share, particularly due to relatively low competitive intensity.
“While some product activity is expected, the broader global shift towards SUVs, driven partly by electrification, could structurally constrain sedan growth, as the body style is generally less suited to EV packaging and consumer preferences are increasingly tilted towards SUVs. However, in the near term, brands with a strong sedan portfolio could still leverage the relatively open competitive landscape to drive growth,” Gupta said.
“In a market as large as India, there will always be a sizeable customer base that continues to value the practicality, efficiency and driving dynamics of sedans,” he added.