The year was 2000. The first two Completely Built Units (CBU) of Skoda Octavia landed in India and rushed to Aurangabad where the Volkswagen Group company would eventually set up a modern manufacturing facility. A confident Imran Hassan, as the head of the Czech company in India, looked keen to drill the fact that his Octavia was a car with a Czech badge but actually German in its quality – build and almost all of that it had to offer. A precursor of a segment that would pull buyers big time, the Octavia was official launched a year later in 2001. It was the same year that the Honda Accord was launched, albeit at a higher price point. The Hyundai Sonata too hit the market soon. The Honda Civic arrived in 2005, whereas the Toyota Corolla in 2003. The Hyundai Elantra arrived at round the same time. With SUVs yet to be the rage, these aspirational ‘executive’ sedans soon defined a new standard in the Indian auto industry. They came to occupy what would be termed as the C+ or D-segment. Forming an upper crest of sedans that were status and lifestyle-oriented, the two segment cars drew large sales volumes. The Octavia sold an estimated 8,000 units in 2005. A year before, in 2004, Honda Siel Cars sold 2,977 Accords. It cornered an enviable market share of 40 percent in its segment, an increase of 69 percent over 2003.

Between 2001 and 2010, the ‘executive’ sedan segment continued to be the ‘force’ with good sales. The introduction of new models like the Toyota Corolla and Honda Civic helped. The launch of large SUVs like the Hyundai Terracan, Ford Endeavour and Honda CR-V in the same time span did not create much ruffle as these were priced higher and were out of reach of many. It was with the launch of the Toyota Fortuner in 2009 that the SUV segment began gaining some serious muscle. By then, the D-segment had seen a good amount of shake and tumble. New additions included the Volkswagen Jetta and Passat. By 2011, the segment comprised the Toyota Corolla, Skoda Octavia, Honda Civic, Volkswagen Jetta, Hyundai Sonata Embera, Chevrolet Cruze and a few others. Crowded it became, and with an amount of fanfare to boast of. It turned out to be a segment that every manufacturer wanted a pie of. This, despite the SUV rage catching on since 2012 as the Ford EcoSport and Renault Duster arrived on the scene.

Vehicle buyers in India were suddenly exposed to a wider scheme of things; they were in fact torn between choosing an aspirational sedan or an SUV. The D-segment cars soldiered on with fair numbers to talk home about, albeit the likes of Civic and Octavia and not the Accord and the Sonata. On muted sales volumes, Honda discontinued the Accord in 2013. In May 2013, only 24 units of the ‘executive’ sedan were sold as compared to the sale of 68 CR-Vs. The Toyota Corolla sold 368 units in May 2013 as compared to the sale of 353 numbers in the month before. The Volkswagen Jetta sold 266 numbers in May 2013, and the Passat, 141 numbers. The Octavia, renamed as the Laura, sold 305 units in May 2013 as compared to the sale of 126 units in April 2013.

The near six-car D-segment has shrunk to a lone warrior in 2021. With the latest generation Honda Civic launched and quietly discontinued, the only car that seems to make up the segment today is the new Skoda Octavia. In the absence of Toyota Corolla, the only other car in the segment to give company to the Octavia is the Hyundai Elantra. Its numbers are anything to write home about today. The new Octavia has been priced uncomfortably close to the Superb with a starting price of INR 26 lakh. When it was first introduced in 2001, it was priced at no more than INR 10 lakh.

The executive sedan dilemma

If the Renault Duster should be credited to create some serious pull towards SUVs in India starting from 2012, today, it is the segments containing SUVs that are the most crowded. The clues of how the D-segment has shrunk to include just the Elantra or the Octavia (the new Octavia actually looks to have moved up and beyond the reach of this segment ironically) may be found in the proliferation of the SUVs at various levels – right from the Ford EcoSport level to the Toyota Fortuner level (where SUVs assume a serious form and function, complete with a 4WD system). A segment that did an estimated 10,000 units in 2005 has come down to a few hundred units in 2021. In January 2021, 32 units of the Elantra were sold. Eight units of the Octavia were sold. The Superb sold 239 units in the same month! Comprising cars that measure over 4.5m in length and are powered by engines with a displacement capacity of between 1800 cc and 2000 cc, the D-segment contenders have been priced between INR 15 lakh and INR 25 lakh.

Sitting above the C-segment, which consists of cars like the Maruti Ciaz and the Hyundai Verna, the D-segment cars have always been about status, comfort, features and performance. They are therefore about lower sales volumes and high production costs, making them difficult to pursue by many automakers. Proving to be a segment that has been tough to crack for many OEMs, the ones to taste immense success have been Skoda and Toyota with their Octavia and Corolla, respectively. With sales shrinking to become a fraction of that of the SUVs, and even not being as strong during their peak, the D-segment is a study that should reveal the time travel of the Indian passenger vehicle space. Affected extensively by the proliferation of SUVs at various price points, the D-segment is all but gone. The recent figures by SIAM indicating that SUV acceptance has increased steadily, and has grown to be more than the total sales of sedans and hatchbacks combined in the April-June quarter of 2021, the D-segment, it is clear, has shrunk drastically. With the B-SUVs (like Maruti Suzuki Brezza, Hyundai Venue, Tata Nexon) eating into the C-sedan segment and the larger C-SUVs (like KIA Seltos, Tata Harrier, Hyundai Creta) taking a pie out of the D-sedan segment, what was once considered as the most coveted has now been relegated to soldier on with much difficulty.

With India refusing to shift from being a price sensitive market, and with a certain purchasing power equation always present, the growth in SUVs that come at desirable price points with an aspirational value to talk about, the D-segment, it may be an exaggeration to say is on its last legs. Undercutting sedans when it comes to pricing, SUVs are proving to be the ruthless D-segment killers. Presenting a strong perception regarding ‘value for money’, it is they that are providing no chance for even the existing D-segment contenders to have much leeway. They may be world-class and highly regarded the world over, but the D-segment cars like the Skoda Octavia and Hyundai Elantra look like they are up against a wall. Made from Completely Knocked Down (CKD) kits that are weighed by the cost versus volume considerations, the D-segment cars that exist suffer from a significant cost disadvantage. Add low demand, and it is not surprising for Skoda to position the new Octavia within rubbing distance of the Superb in terms of price and features. Such is it that those looking for ventilated seats could go for the Superb and those not needing them could for the Octavia!

With such fine differentiation defining the current crop of vehicles that make up the D-segment, a big shake down does not seem far away. It could be driven by regulations and market requirements for certain. Already dissuading many OEMs to drop their D-segment offering, regulations like BS VI have indeed been a big factor. The other has been the availability of SUVs at price points that correspond with D-segment sedans. A big plus concerning SUVs is the status and lifestyle image they present. The other is their ability to travel over rough terrain and provide good visibility due to the high seating position. Providing a sense of invincibility, SUVs seem to offer more than a D-segment sedan could, today. At the top, it has increasingly come under pressure from luxury sedans and other offerings from brands like Audi, Mercedes-Benz and BMW. Some of the entry-level products from these OEMs don’t cost a premium. Owning used luxury cars has also become easy as their volumes have risen. This too has put pressure on the existence of the D-segment without any doubt. W ith the Octavia taking a position within close proximity to the Superb, the future of D-segment, at best, looks tough. This, even with the talk of the new Elantra being introduced gaining force with every passing day. Unless Hyundai unleashes the Elantra with some novel trick up its sleeve, there’s not much left to talk about the once glorious D-segment. (MT)

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Tata Motors Passenger Vehicles, has reported its best-ever annual performance in FY2026 with wholesales of 641,587 units, up 15 percent YoY. This includes 631,387 units in the domestic market, up 14 percent, while exports came at 10,200 units, up 281 percent YoY.

For March 2026, the company’s sales came at 66,192 units, up 28 percent, while exports came at 779 units, up 204 percent YoY.

Interestingly, electric vehicles recorded its highest-ever quarterly sales of approximately 27,000 units, a 69 percent increase YoY. Annual EV volumes reached 92,120 units. On the other hand, sales of CNG vehicles crossed 170,000 units, up 24 percent YoY.

The Nexon and Punch models were the top-selling SUV models in the second half of the financial year. Recent launches, including the Sierra, a refreshed Punch and petrol variants of the Harrier and Safari, also saw continued customer traction.

The company expects the passenger vehicle industry to reach record annual volumes of approximately 4.7 million units, reflecting an 8 percent growth. Tata Motors emerged as the second-ranked player in the industry based on Vahan registrations during the second half of FY2026.

Shailesh Chandra, MD and CEO, Tata Motors Passenger Vehicles, said, “PV industry sales are expected to reach record volumes of around 4.7 million units for the year, reflecting 8 percent year on year (YoY) growth. The industry witnessed a strong rebound in the second half, posting double digit growth, supported by GST 2.0 implementation and a robust festive season. For Tata Motors Passenger Vehicles, FY26 has been a landmark year marked by multiple milestones. We achieved our highest ever annual sales volumes of over 640,000 units, delivering industry beating growth of 15 percent YoY and ended it with strong positive momentum. Looking ahead, industry momentum is expected to sustain, led by growth in SUVs, CNG and EV. At the same time, the industry will need to closely monitor geopolitical developments to mitigate potential supply-side risks.”

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Honda Cars India (HCIL), a leading manufacturer of passenger vehicles, has recorded domestic sales of 7,585 units in March 2026, up 5 percent YoY, as compared to the 7,228 units sold last year. The company also reported exports of 2,451 units for the month.

The sales growth was supported by demand for the Amaze and Elevate models. Honda Cars India intends to expand its vehicle lineup in the upcoming financial year, with the launch of its first battery electric vehicle (BEV) scheduled for the second half of the year.

Kunal Behl, Vice-President, Marketing & Sales, Honda Cars India, said, “Demand for all Honda models specially Amaze and Elevate continues to be strong with exciting promotions and product offerings which helped us achieve 5 percent growth during Mar 2026. We are excited to enter the new fiscal with plans to expand our lineup, including the launch of our first BEV in the second half. We remain highly optimistic that our strong focus on customer satisfaction will continue to drive growth and sustain positive momentum.”

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Nissan Motor India (NMIPL), one of the leading passenger vehicle manufacturers, has recorded its best-ever monthly sale in March 2026, its highest in the last five years.

The company sold a total of 10,388 units in March 2026, which includes 4,408 units in the domestic market, while exports came at 5,980 units. This marks a 98 percent growth in domestic wholesales compared to February 2026.

The company attributed the smart uptick on the back of beginning of customer deliveries for the Nissan Gravite MPV, while the Nissan Magnite maintained its sales momentum. The expansion of its network presence also supported increasing customer traction.

The start of Gravite deliveries is identified as a milestone in the company’s growth phase in India. Nissan intends to sustain this trajectory by strengthening sales and service experiences and further expanding its network footprint across the country.

Saurabh Vatsa, Managing Director, Nissan Motor India, said, “March has been a defining month for Nissan in India, the strong growth in domestic sales reflects the positive customer response to our product portfolio. With the commencement of customer deliveries of the all-new Nissan GRAVITE, we would like to thank our customers for their love and appreciation for the Nissan Brand. The over-whelming response to the product reinforces our confidence in the opportunities ahead. Together with the continued momentum of the Nissan Magnite, the dedication of our Network Partners and support of Nissan Finance & other Banking partners, we remain focused on strengthening our Sales & Service experience, while further expanding our network footprint for sustaining long-term growth in the Indian market.”

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  - Bidyut Ghosh April 02, 2026 11:35 AM

  This is excellent move from Nissan India

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Toyota Kirloskar Motor (TKM) reports 20 percent uptick in its wholesales for FY2026 with 406,081 units sold, as compared to 337,148 units last year.

The company recorded growth across both domestic and export markets during the financial year. Domestic sales rose by 19 percent to 367,107 units, while exports grew by 41 percent to 38,974 units.

In March 2026, Toyota Kirloskar Motor reported a 24 percent increase in total sales, with 37,194 units sold compared to 30,043 units a year ago.

The company attributes a robust demand for its product portfolio, which was supported by the introduction of the Land Cruiser 300, as well as new grades and special editions for the Innova Hycross, Fortuner, Camry Hybrid and Hilux. Technical updates included a new six-speed automatic transmission for the Urban Cruiser Hyryder AWD variant.

The company also standardised six airbags across the Rumion, Glanza, Urban Cruiser Taisor, and Urban Cruiser Hyryder models. The Innova Hycross achieved a five-star Bharat NCAP rating during this period.

Toyota Kirloskar Motor expanded its market reach through customer-centric initiatives and brand engagement activities, including the Toyota Experiential Museum (TEM) and a tour by brand ambassadors Drum Tao. These efforts were intended to increase reach among younger audiences and reinforce the brand's mobility positioning.

Sabari Manohar, Executive Vice-President, Sales-Service-Used Car Business, Toyota Kirloskar Motor, said, “We delivered a positive performance this financial year, driven by sustained demand across our SUV, MPV and compact segments. The introduction of new products and customer centric initiatives during the year further helped position Toyota as a dynamic, technology driven and youth‑oriented brand. This momentum reflects the continued trust in Toyota’s quality, reliability and overall ownership experience. In a rapidly evolving market, such consistency underscores the strength of our fundamentals and positions us well for long‑term sustainable growth. We sincerely thank our customers, dealer partner, Government and other stakeholders for their trust & unwavering support. We remain focused on strengthening our product and technology offerings in line with our multi‑pathway approach of hybrid & electrified vehicle technologies in the mobility space. Looking ahead, we remain committed to creating long‑term value while continuously improving every touchpoint across the customer ownership journey.”

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