If it feels like every second car on the Indian road is now an SUV, you are not imagining it. The latest industry data for January 2026 confirms a massive shift: Sport Utility Vehicles (SUVs) now control 66% of the Indian passenger vehicle market.

Gone are the days when small hatchbacks were the default choice for first-time buyers. Today, Indian families want high ground clearance, road presence, and muscular designs. From the record-breaking sales of the Hyundai Creta to the just-launched 2026 Tata Punch Facelift, here is everything you need to know about India’s SUV explosion this week.

The Big Number: 66% Market Share

According to recent reports from SIAM (Society of Indian Automobile Manufacturers) and FADA, the share of SUVs and MPVs has jumped from 61% in 2024 to nearly 66% in 2026.

• Why the shift? Experts call it a “psychological upgrade.” Buyers under 40 don’t just want transportation; they want a vehicle that makes a statement.
• The Losers: Sedans and entry-level hatchbacks are seeing their lowest market share in decades, although exceptions like the Swift Dzire still perform well.

Trending Now: The 2026 Tata Punch Facelift

The hottest topic in the SUV world this week is the 2026 Tata Punch. Tata Motors has just updated India’s popular micro-SUV to keep it fresh against competitors.

• What’s New? The ground clearance has been increased to 193mm (up from 187mm), making it even better for broken city roads.
• Design: It gets connected LED tail lamps and a sharper front bumper.
• Performance: Reviews suggest the engine tuning is smoother, fixing the “sluggish” feel of the older model.
• Price: Prices have seen a marginal hike, starting around ₹6.15 Lakh (estimated ex-showroom).

The Sales King: Hyundai Creta

While Tata and Mahindra are growing fast, the Hyundai Creta remains the undisputed King of SUVs. In January 2026, it recorded over 18,500 unit sales, a massive 40% jump compared to last year. Despite the launch of newer rivals, the Creta’s combination of premium interiors, resale value, and multiple engine options (Petrol, Diesel, Turbo) keeps it at the #1 spot in the mid-size SUV category.

Read more: Maruti Ertiga 2026

Coming Soon: The Return of the Legend

If you are planning to buy an SUV next month, you might want to wait. The legendary Renault Duster is set to make its grand comeback.

• Launch Date: Expected to be unveiled on January 26, 2026.
• What to Expect: A completely new rugged design, premium interiors, and likely a hybrid engine option to tackle high fuel prices.

Homegrown Power: Mahindra & Tata

A key part of this SUV story is the dominance of Indian brands. Mahindra & Mahindra has climbed to the #2 spot in passenger vehicles, driven by the massive success of the Scorpio-N and the XUV700. The “Made in India” tag is now associated with safety and build quality, with both Tata and Mahindra consistently scoring 5-star safety ratings.

Conclusion: Which SUV Should You Buy?

The market is crowded, but the choices are clearer than ever:

• For City & Value: Go for the Tata Punch 2026 or Maruti Brezza.
• For Comfort & Features: The Hyundai Creta is still the safest bet.
• For Highway & Power: The Mahindra Scorpio-N or XUV700 offers the best “big car” feel.
• Worth Waiting For: The Renault Duster (New Gen) arriving later this month.

Frequently Asked Questions (FAQs)