PV market could see avalanche of BEV and SUV launches over next 12-15 months as carmakers pivot to premium vehicles

At a time when India’s Passenger Vehicle (PV) market is on course to hit the 5-million-unit mark over the next few years, the industry is bracing for a wave of launches that could reshape the competitive landscape over the next 12-15 months.

Carmakers including Maruti Suzuki, Tata Motors, Mahindra & Mahindra, Hyundai, Renault, Nissan, Toyota, Kia, Honda Cars India and Volkswagen Passenger Cars India are preparing an aggressive pipeline of Battery Electric Vehicles (BEVs), premium Sport Utility Vehicles (SUVs) and lifestyle utility vehicles as competition intensifies across segments.

From ₹12 lakh electric vehicles to ₹50 lakh premium lifestyle SUVs, carmakers are preparing products aimed at capturing the next phase of growth in the domestic passenger vehicle market.

According to Society of Indian Automobile Manufacturers (SIAM) data, India’s passenger vehicle market closed FY26 with wholesale volumes of about 43 lakh units. Industry estimates peg FY27 sales growth at 4-6%, taking volumes close to the 45 lakh-unit mark.

SUVs remain the market’s growth engine

SUVs contributed nearly 63% of total passenger vehicle sales in FY26, compared with less than 50% five years ago. Analysts expect that share to rise further to nearly 66-68% in FY27 as carmakers expand offerings across compact, midsize and premium segments.

Tata Motors is preparing the Sierra EV, expected to be positioned in the ₹20 lakh-₹25 lakh bracket, while Mahindra is likely to deepen its born-electric strategy with the BE.07 under its INGLO architecture. Hyundai is expected to expand its urban EV portfolio in the ₹12 lakh-₹20 lakh segment.

The country’s largest carmaker, Maruti Suzuki, has an upcoming micro-SUV, a three-row SUV and hybrid expansion planned across models such as the Fronx and Grand Vitara, according to sources privy to the development. The company declined to comment on the plans.

Global manufacturers are sharpening their India strategy as well. French carmaker Renault is considering bringing the Bigster SUV to India, which could target the premium three-row utility vehicle segment around the ₹20 lakh mark. Similarly, Nissan’s upcoming Tekton SUV is expected to intensify competition in the midsize SUV category currently dominated by Hyundai Creta and Kia Seltos.

Volkswagen Passenger Cars India is evaluating additional SUVs based on the Kylaq platform as it sharpens focus on the volume SUV market, while Honda Cars India is working on a sub-four metre SUV to strengthen its position in the fast-growing compact utility vehicle segment. Toyota, meanwhile, is expected to strengthen its lifestyle SUV portfolio with the globally discussed Land Cruiser FJ. The spokespersons of the Indian arms of Volkswagen, Honda and Toyota did not respond to queries sent by Fortune India.

BEV penetration expected to rise steadily

The launch wave also reflects the market’s accelerating shift toward electrification. BEVs accounted for an estimated 2.7-3% of total passenger vehicle sales in FY26, translating into roughly 1.2 lakh-1.3 lakh units. Analysts expect penetration to rise toward 4-5% in FY27 as more electric SUVs and crossovers enter the market.

According to Puneet Gupta, Director, S&P Global Mobility India and ASEAN, “Premium SUVs and BEVs generally generate significantly stronger margins for carmakers compared with small entry-level cars because of higher transaction values, richer feature content and stronger brand positioning. That explains why companies are aggressively expanding portfolios across these segments,” Gupta said.