The Slow Death of Sedans in India: Why the Love for Sedans Is Fading Year by Year

Introduction: From King of the Road to Forgotten Segment

Once upon a time, sedans ruled Indian roads. Whether it was the classy Honda City, the reliable Maruti Suzuki Dzire, or the luxurious Skoda Octavia, owning a sedan was considered a status symbol. Fast forward to 2025, and sedans are becoming a rare sight on roads dominated by SUVs and crossovers.

But what really led to this steep fall in demand for sedans in India?

Let’s dive deep into the data and reasons why the sedan segment is shrinking fast.

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Reasons for Major Decline

• SUV Dominance: SUVs have become the preferred choice for a large segment of Indian buyers, capturing a significant market share. 
• Low Ground Clearance: Sedan cars, with their lower ground clearance, are often perceived as less suitable for India’s varied road conditions, especially in rural areas and on poorly maintained roads. 

• Changing Consumer Preferences: There’s a growing trend of prioritizing spaciousness and practicality, which SUVs often fulfill better than sedans.
• Marketing & Availability: Manufacturers are increasingly focusing on expanding their SUV lineups, further driving the shift in consumer preference.
• Lower Seating Position: Sedans offers a low ground clearance, whereas Indian drivers are now fond of a higher seating position and better visibility.

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📉 Year-on-Year Decline in Sedan Sales in India

Here’s a quick look at how sedan sales have dropped over the past few years:

🚨 From 5.47 lakh units in 2018-19 to an estimated 1.95 lakh in 2024-25, that’s a massive drop of over 64%!

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🛑 Why Are Sedan Cars Losing Popularity?

Let’s explore the major reasons behind this alarming decline:

1. SUV Craze Has Taken Over

The biggest reason sedan cars are dying in India is the overwhelming rise of SUVs – both compact and mid-size. Cars like the Maruti Suzuki Vitara Breeza, Tata Nexon, Hyundai Creta, and Kia Seltos have stolen the spotlight.

Why SUVs win:

• Higher ground clearance

• Better road presence

• Perceived to be safer

• Ideal for Indian roads

• Commanding sitting position

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2. Poor Road Conditions Suit SUVs More

Indian roads, especially in Tier 2 and Tier 3 cities, are far from sedan-friendly. Potholes, speed breakers, and unpaved roads make SUVs the practical choice. Also, in Tier 1 cities there is a lot of problem during monsoon season due to waterlogging in various parts of the cities.

Ground clearance matters. Most sedans have around 165 mm, whereas SUVs offer 190 mm or more – a clear advantage. However, car manufacturers are focusing on ground clearance of sedans, like Volkswagan and Skoda have there Virtus and Slavia with 180mm of ground clearance.

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3. Boot Space vs Utility

While sedans offer decent boot space, they lack the versatility of SUVs. You can’t fold the rear seats in most sedans, limiting luggage capacity. SUVs, however, adapt better to long trips and shifting needs.

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4. Lack of New Launches

Except for a few facelifted models like the Maruti Suzuki Dzire and Hyundai Verna, most sedan lineups have become stagnant.

Meanwhile, new SUVs launch almost every quarter – giving buyers more choices and fresh appeal.

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5. Rising Cost of Ownership

Sedans used to be fuel-efficient and value-for-money. But now:

• Diesel sedan cars are nearly gone

• Petrol prices are high

• Maintenance is costlier than compact SUVs

Hence, many buyers move to CNG or hybrid SUVs instead.

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6. Resale Value Has Crashed

SUVs fetch significantly better resale value than sedans today. A 5-year-old compact SUV like Maruti Suzuki Vitara Brezza or Hyundai Creta has a much better retained value than a 5-year-old Honda Amaze or Ciaz.

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7. Consumer Behavior Trends

• Buyers today prefer higher seating and commanding view.

• First-time buyers are choosing SUVs as their first car.

• Influence of social media and YouTube car reviews focusing more on SUVs.

• Younger generation wants more aggressive designs (SUVs score here).

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8. Cost of Ownership Comparison: Sedan vs SUV:

Not all is lost. Some sedan cars still have a loyal following:

But even these models face heat from SUVs in their price brackets.

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🔁 What Can Save the Sedan Segment?

If carmakers want sedan cars to bounce back, they need to:

• Offer SUV-like ground clearance

• Add more tech and premium features

• Launch electric sedans at competitive pricing

• Focus on comfort and driving dynamics (where sedans shine)

EVs might offer a second life to sedans if brands bring futuristic, aerodynamic models with great range. For example, Tata could revive the Indigo as a budget EV as the way Tata is doing with all its SUV’s.

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📊 Google Trends Snapshot

According to Google Trends (2023-2025):

• Search interest in “SUV under 10 lakhs” has increased by 41%

• Search interest in “Best sedan in India” has dropped by 38%

This clearly shows where consumer attention is shifting.

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Final Thoughts: Are Sedans Gone Forever?

While the current situation looks grim, sedan aren’t entirely dead – they’re just no longer the default choice

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They still appeal to:

• Chauffeur-driven owners

• Driving enthusiasts who love cornering and comfort

• People who prefer subtle design over flashiness

But for now, unless something dramatic changes, SUVs will continue to dominate, and sedans may stay a niche market in India.

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🔍 FAQs on Decline of Sedans in India

Q1. Why are sedan sales declining in India?
SUVs are seen as more practical, safer, and better suited for Indian roads.

Q2. Are there any good sedans still available?
Yes, cars like Honda City, Hyundai Verna, Volkswagan Virtus and Skoda Slavia still offer great features and comfort.

Q3. Will sedans make a comeback?
Possibly, if EV sedan cars catch on or carmakers reimagine sedan cars with SUV-like traits.

Q4. What is the future of compact sedan like Dzire?
They may survive due to affordability and fleet demand, but their market is shrinking fast.

Also Read:

• Top Selling Cars in India in May 2025
• Best Cars under ₹10 Lakhs for long term ownership