New Delhi, Oct. 20 -- India's automobile market is witnessing a fundamental shift in buyer preferences, with SUVs firmly overtaking hatchbacks as the country's preferred passenger vehicles.

According to a recent SOIC Research report titled "Premiumisation: India's Next Consumption Wave," entry-level hatchbacks have been losing market share consecutively for the past five years, signalling a broader change in mobility aspirations.

The report highlights that SUVs have grown to nearly half of India's passenger vehicle sales, while entry hatchbacks have stagnated amid rising incomes and evolving consumer aspirations.

Between FY2018-19 and FY2023-24, the share of entry hatchbacks fell steadily, whereas both entry and premium SUVs expanded s...