India’s passenger vehicle market kicked off 2026 with strong sales, especially in the SUV segment, which once again dominated buyer preferences. But the story isn’t just about big SUVs from established players — smaller, value‑for‑money models starting around ₹8 lakh are reshaping the sales chart, pushing legacy names like the Mahindra Scorpio and Hyundai Creta down the list.

🎯 Compact SUV Trend Takes Center Stage

According to the latest industry data for January 2026, SUVs continue to lead demand, but with a twist: compact and affordable SUVs are attracting more buyers than ever before. The Tata Nexon, priced from around ₹8.32 lakh, emerged as the best‑selling model overall, not just among SUVs, with 23,365 units sold — its highest monthly tally yet.

Following closely was the Tata Punch, another compact SUV with aggressive pricing, which clocked 19,257 units in the month. These two models alone outpaced middata-size SUVs that traditionally ruled the market.

📉 Legacy SUVs See Relative Slide

While still posting respectable numbers, some established models didn’t grow as fast as the smaller rivals:

• Hyundai Creta, the long‑time leader in the middata-size SUV segment, sold 17,921 units, remaining popular but falling behind the Nexon and Punch in total numbers.
• Mahindra Scorpio (including Classic and N variants) registered 15,542 units, showing demand but not enough to rival the compact SUVs’ volume performance.

Analysts believe that competitive pricing, affordable EMIs, and rising financing availability for smaller SUVs have made them a top choice for first‑time car buyers and urban families — segments once dominated by larger SUVs and lifestyle vehicles.

💡 Why the ₹8 Lakh SUV Surge?

Several factors have helped budget‑friendly SUVs drive sales momentum in January:

📌 1. Value for Money

Smaller SUVs like the Tata Nexon and Punch offer:

• Feature‑rich cabins
• Comfortable seating and safety features
• Urban‑friendly dimensions
  These appeal strongly to city buyers looking for SUV style without high price tags.

📌 2. Lower Cost of Ownership

With competitive pricing starting in the ₹8 lakh region, insurance, fuel costs, and maintenance tend to be more affordable for middle‑income families compared to larger SUVs.

📌 3. Wider Dealer Incentives

Manufacturers are offering deals, attractive finance schemes, and inventory bonuses to move compact SUVs quickly — especially as the market shifts toward smaller UVs.

🚗 SUV Sales Snapshot — january 2026

Here’s how the SUV landscape looked in India’s overall vehicle sales chart for January:

Rank

Model

Units Sold

Comments

1

Tata Nexon

23,365

Compact SUV, strong feature set

2

Tata Punch

19,257

Micro‑SUV appeal

3

Hyundai Creta

17,921

Middata-size stalwart, still strong

4

Maruti Brezza

17,486

Consistent compact SUV

5

Mahindra Scorpio

15,542

Rugged mid‑data-size choice

This mix shows entry‑level and compact SUVs leading the segment, while traditional middata-size names defend their ground but don’t dominate.

📊 What This Means for Buyers and the Market

The January sales trend suggests a broader shift in buyer priorities in 2026:

• Affordability over data-size: Buyers are increasingly valuing price‑to‑feature ratio over vehicle data-size.
• Compact SUV leadership: Models priced around ₹8–12 lakh are now mainstream winners.
• Segment mix evolution: Former benchmarks like the Creta and Scorpio remain relevant but are no longer guaranteed the top spots.

This shift reflects a maturing SUV market where smarter pricing, fuel economy, and everyday usability carry as much weight as brand legacy and feature lists.

🚀 Bottom Line

January 2026 sales show that India’s SUV story is evolving. While SUVs continue to dominate overall, value‑priced compact models are stealing the spotlight, outpacing traditional favorites like the Creta and Scorpio in total volumes. For buyers, this means more choice, better value, and competitive pricing — and for automakers, a clear signal: lower‑priced, feature‑packed SUVs are the future of indian car sales.

 

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