Brands like Honda City, Maruti Ciaz, and Hyundai Verna experienced steep sales declines, leading to Maruti’s decision to discontinue the Ciaz model.
The compact and mid-size sedan segments in the passenger vehicles (PVs) category declined not only in the domestic market in the fiscal year 2024-25 (FY25) but also in exports compared to FY24.
During the year, the total domestic wholesales (dispatches to dealers) of the compact segment (Maruti Baleno and Dzire; Hyundai Aura and i20; Tata Tiago and Altroz; and Honda Amaze) declined by 11.48 per cent year-on-year (YoY) to 11,46,070 units, compared with 12,94,798 units in FY24.
Similarly, exports declined by 11.53 per cent YoY to 2,09,260 units in FY25, compared with 2,36,547 units in FY24, the latest data shared by Society of Indian Automobile Manufacturers (SIAM) has said.
In the mid-size sedan category, including Maruti Ciaz, Honda City and Hyundai Verna, total domestic sales declined by 28.12 per cent YoY to 56,328 units in FY25, compared with 78,373 units in FY24.
In terms of exports, although the total numbers have declined YoY, they are much higher than what the manufacturers have sold domestically. The total exports reached 1,53,510 units in FY25, declining by 1.53 per cent YoY as compared with 1,57,510 units in FY24, the SIAM data indicated.
Once market leaders in mid-size sedan market, such as like Honda City, Maruti Suzuki Ciaz and Hyundai Verna, have all seen sales dwindle over the last couple of years.
For instance, Honda City sales in the domestic market in FY25 declined to 10,901 units in FY25z in the domestic market, compared with 16,925 units in FY24. In exports also, it has declined to 14,099 units last year, compared with 26,206 units in the previous financial year.
Similarly, sales of Maruti Ciaz declined to 8,402 units in FY25 in the domestic market against 10,337 units in FY24. Exports also, it has declined to 9,977 units last year, against 10,973 units in FY25.
Due to falling numbers of sedans, Maruti Suzuki India has even decided to discontinue the vehicle and has said that in the future, the company may bring back the Ciaz in some other form or platform.
Hyundai Verna sales also declined to 15,593 units in the domestic market in FY25 against 30,017 units in FY24, and in exports also it has declined to 52,615 units as compared with 55,177 units in FY24.
One of the main reasons for the declining sales of compact cars and sedans is that customers are picking sports utility vehicles (SUVs) or similar form factors over these two segments.
That is why domestic SUV sales have also grown by 11 per cent YoY to 27,97,229 units in FY25, compared with 25,20,691 units in the April-March period of 2023-24. Exports have also grown by 54.3 per cent YoY to 3,62,160 units in FY25, compared with 2,34,720 units in FY24.
According to SIAM, export demand in key markets of interest, such as Africa, Latin America, and neighbouring countries, is likely to continue as ‘Made in India’ vehicles gain traction.
Overall, the automobile industry will closely monitor macroeconomic factors and global geopolitics, which will determine the key demand conditions and supply chain dynamics going forward, it added.
Published on April 16, 2025
