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What Kind of Cars Are Loved the Most by Customers in India?

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CarPhD

Apr 9, 2025

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India is one of the fastest-growing automobile markets in the world, with a diverse range of buyers who have different preferences based on budget, fuel efficiency, comfort, and technology.

Anuj Guglani, co-founder, and CEO,  CarPhD.com mentions,  ‘Customers are being spoiled for choice,these days. However, they have this special ability of looking beyond the noise, the smoke screens of sales pitches. It’s their hard earned money, so they want the best bang for it !’

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He further adds, ‘They can detect if a car doesn’t meet the safety and the crash safety norms, despite being overloaded with supposed safety features and electronics. They are discerning and particular because their family rides in it, and hence a lot rides on it.’

Over the years, certain car segments have gained immense popularity among Indian customers. Let’s take a look at the most loved types of cars in India and what makes them so special.

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1. Hatchbacks – The Budget-Friendly Favorite

Hatchbacks have traditionally been the most popular cars in India due to their affordability, fuel efficiency, and ease of driving in congested city traffic. These cars are compact, making parking easier, and they deliver great mileage—one of the most crucial factors for Indian buyers.

Why Indians Love Hatchbacks?

  • Affordable pricing
  • Low maintenance costs
  • Excellent fuel efficiency
  • Compact size for city driving

Popular Hatchback Models in India

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2. Compact SUVs – The New Favorite

In recent years, compact SUVs have gained immense popularity, blending the practicality of hatchbacks with the strong road presence of SUVs. These cars offer high ground clearance, advanced features, and a more powerful engine compared to hatchbacks.

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Why Indians Love Compact SUVs?

  • Stylish and rugged design
  • Higher ground clearance for rough roads
  • More spacious than hatchbacks
  • Advanced safety features

Popular Compact SUVs in India

3. Sedans – The Choice of Comfort & Status

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Sedans have always been admired for their comfort, spacious interiors, and smooth driving experience. Though their market share has declined due to the rise of SUVs, they remain a preferred choice for buyers who want a more premium experience.

Why Indians Love Sedans?

  •  Comfortable and spacious interiors
  •  Premium look and feel
  •  Smooth ride quality

Popular Sedan Models in India

4. MPVs – The Perfect Family Car

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For large families and travel enthusiasts, Multi-Purpose Vehicles (MPVs) offer the ideal mix of space, comfort, and utility. These cars are great for road trips, long journeys, and carrying large amounts of luggage.

Why Indians Love MPVs?

  • Spacious interiors with 6-7 seats
  • Comfortable for long drives
  • High resale value

Popular MPV Models in India

5. Electric Cars – The Future of Mobility

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With rising fuel prices and growing environmental awareness, electric vehicles (EVs) are becoming increasingly popular. Although EV adoption is still in its early stages, brands like Tata, MG, and Mahindra are making electric cars more accessible.

Why Indians Love Electric Cars?

  • Lower running costs compared to petrol/diesel cars
  • Government incentives and tax benefits
  • Zero emissions for an eco-friendly drive

Popular Electric Cars in India

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Final Thoughts

Indian customers prefer cars that offer a balance of affordability, fuel efficiency, safety, and features. While hatchbacks remain the top choice for budget-conscious buyers, compact SUVs are rapidly gaining traction due to their stylish appeal and practicality. Meanwhile, sedans and MPVs continue to be loved for their comfort and space.

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With the rise of electric vehicles, India’s car market is evolving, and the future promises more eco-friendly and technologically advanced options for consumers.

What kind of car do you love the most? Let us know in the comments!

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