Overview

• Passenger cars’ market share has fallen from 65% in 2018-19 to 31%, as SUVs and multi-purpose vehicles now make up 65% of sales.
• Congress General Secretary Jairam Ramesh said the shift signals growing inequality with the elite buying pricier SUVs.
• Approximately 88% of households earn under ₹12 lakh annually, a threshold that leaves most outside the tax relief introduced in the FY26 budget.
• Consumers are increasingly turning to the used-car market as automakers shift production toward export markets to offset weak domestic sales.
• Incomes among lower and middle-income groups have stagnated under medium to high inflation, hindering growth in car purchases despite moderate GDP gains.