The Indian passenger vehicle market witnessed a sharp 11.2% month-on-month decline in November 2025, with domestic sales falling from 3,99,605 units in October to 3,54,969 units. While some correction was anticipated following the festive season peak, the magnitude of decline varied dramatically across segments, revealing interesting patterns about consumer behaviour, pricing dynamics, and the lingering effects of the GST reduction announced in September.
The UV2 Segment: Steepest Fall
The UV2 segment, comprising SUVs between 4,400-4,700mm priced under Rs 20 lakh, recorded the steepest decline at 23.6%, falling from 49,880 units in October to 38,131 units in November. This segment, which includes popular nameplates like the Mahindra Scorpio, Thar Roxx, XUV700, Hyundai Alcazar, and Kia Carens, appears to have been most susceptible to the post-festive demand exhaustion.
Mahindra’s combined sales of Scorpio, Thar Roxx, and XUV700 dropped 22.1% from 36,006 units to 28,038 units. The Thar Roxx, which had been maintaining waiting periods of several months, saw production constraints intersect with normalising demand. The Hyundai Alcazar witnessed a sharper 33.3% decline from 1,259 units to just 840 units, while the Kia Carens fell 25.6% from 8,779 units to 6,530 units. Maruti’s XL6, already a niche player, dropped 32.3% from 3,611 units to 2,445 units.
The UV2 segment’s vulnerability stems from its positioning. These vehicles, typically priced between Rs 15-20 lakh, represent considered purchases where buyers often time their decisions around festive periods for auspicious delivery dates and maximum discounts. October’s GST benefit pass-through and aggressive dealer-level discounts likely pulled forward demand that would have otherwise materialised in subsequent months.
UV1 Segment: The 16% Correction
The UV1 category, spanning compact SUVs between 4,000-4,400mm, declined 16% from 94,533 units to 79,399 units. This segment tells a story of divergent fortunes.
The most dramatic individual declines came from newer entrants struggling to maintain launch momentum. Mahindra’s Electric Origin SUV range (BE 6e and XEV 9e) fell 43.5% from 4,842 units to 2,737 units, suggesting that the tax cuts on non-EVs continue to modulate demand for electric vehicles. The Skoda Kushaq fell 51.9% from 1,219 units to just 586 units, reflecting the Czech brand’s ongoing struggles in the Indian market. Toyota’s Urban Cruiser HyRyder and Rumion combined fell 37% from 14,630 units to 9,211 units.
The segment’s volume leaders showed more resilience. The Hyundai Creta, India’s bestselling midsize SUV, declined a relatively modest 5.6% from 18,381 units to 17,344 units. However, this marks the third consecutive month of decline for the Creta, which sold 18,861 units in September. Competition from the Thar Roxx, Curvv, and now the Maruti e Vitara appears to be gradually eroding Creta’s dominance. The Kia Seltos fell 11.6% from 7,130 units to 6,305 units.
Maruti Suzuki’s UV1 portfolio, which now includes the e Vitara alongside the Ertiga, Grand Vitara, and Victoris, declined 9.4% from 43,992 units to 39,836 units, but remains the segment’s volume leader by a significant margin.
UVC Segment: Sub-Compact SUVs Soften
The sub-4-metre SUV segment (UVC) fell 10.2% from 1,09,144 units to 98,036 units. This category, which includes entry-level SUVs priced under Rs 20 lakh, had been a major beneficiary of the September GST reduction on vehicles under 4 metres.
The Skoda Kylaq, launched with considerable fanfare, saw the sharpest decline at 30.3%, falling from 5,078 units to 3,538 units. While supply constraints may partly explain this, the trajectory raises questions about whether the sub-compact SUV market is approaching saturation with multiple competent offerings.
Mahindra’s combined UVC sales (Bolero, Thar, XUV 3XO, XUV300, and XUV400) dropped 17% from 30,776 units to 25,561 units. The Nissan Magnite fell 20.6% from 2,402 units to 1,908 units.
However, some players bucked the trend. Maruti Suzuki’s Brezza-Fronx-Jimny trio held virtually flat, edging up 0.5% from 29,667 units to 29,807 units. The Hyundai Exter-Venue combination showed relative stability with a 3.8% decline from 18,032 units to 17,350 units. Kia’s Sonet, along with the newly launched Syros, fell 6.9% from 13,530 units to 12,595 units.
Passenger Cars: A Tale of Two Halves
The passenger car segment presented a counter-intuitive picture. While the overall category declined 3.4% from 1,16,601 units to 1,12,612 units, the Mini segment actually grew 33% from 9,621 units to 12,794 units.
This growth was driven entirely by Maruti Suzuki’s Alto and S-Presso, which jumped from 9,067 units to 12,347 units. The entry-level segment’s November surge suggests either inventory corrections or renewed interest at the absolute bottom of the market, possibly from first-time buyers who missed October’s festive deals.
The Compact segment, India’s largest car category by volume, fell 6.3% from 1,01,199 units to 94,788 units. Maruti’s portfolio (Baleno, Celerio, Dzire, Ignis, Swift, WagonR) declined 4.2% from 76,143 units to 72,926 units. The Honda Amaze dropped 23.9% from 3,630 units to 2,763 units, though this may reflect production transitions as the new-generation model ramps up. The Toyota Glanza fell 18.3% from 6,162 units to 5,032 units.
The Executive segment (Skoda Slavia, Octavia) witnessed a 26.4% decline from 1,650 units to 1,214 units, while Mid-Size sedans fell 6.8% from 3,855 units to 3,594 units.
The Resilient Categories
Two segments demonstrated notable stability. The Van segment, dominated by the Maruti Eeco, declined just 2.5% from 13,537 units to 13,200 units. This commercial-use-heavy category is less susceptible to festive timing effects.
The UV3 segment (large MPVs like Innova Crysta and HyCross) fell 15.5% from 11,252 units to 9,512 units, while UV4 (Rs 20-30 lakh SUVs) actually grew 14.8% from 526 units to 604 units, though absolute volumes remain small.
The Discount Factor
The varying magnitude of declines across segments correlates strongly with where discounts were most aggressive in October. The UV2 and UV1 segments, where manufacturers offered substantial festive discounts to clear inventory before year-end, saw the sharpest November corrections. Conversely, segments with tighter supply-demand balance, like Maruti’s sub-compact SUVs, maintained stability.
The GST reduction announced in September, which primarily benefited sub-4-metre vehicles, created a pull-forward effect that manifested in October’s record sales. November’s correction was therefore partly structural, representing a normalisation rather than demand destruction.
As the industry heads into December, the key question is whether November represents a new baseline or merely a pause before year-end push. With inventory levels still elevated at many dealerships and manufacturers keen to close the calendar year strong, December could see renewed discounting, potentially at the cost of January-February volumes.