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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Hyundai Motor India (HMIL) has expanded its Alcazar SUV range with a new Corporate variant with diesel powertrain at prices starting INR 1.78 million and an expansion of automatic transmission options in the Prestige DCT Petrol (7-speed) at INR 1.86 million.

The Alcazar Corporate variant is equipped with a voice-enabled smart Panoramic Sunroof and is available with both 6-speed Manual and 6-speed Automatic transmission choices, and is designed to appeal to the evolving aspirations of Indian SUV buyers.

Tarun Garg, Whole-Time Director and Chief Operating Officer, Hyundai Motor India, said, “At Hyundai Motor India, we are continuously listening to customer feedback and evolving our product offerings to meet their aspirations. The introduction of the Corporate variant in Alcazar Diesel with a voice enabled smart panoramic sunroof and the inclusion of DCT in the Prestige Petrol variant reflects our commitment to providing a more personalized and premium SUV experience. With these updates, we aim to offer more choice and delight to our customers who seek performance, technology and sophistication in their vehicles.”

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When Tata Motors launched the Harrier.ev, it wasn’t just introducing another electric vehicle — it was signalling a shift in India’s premium electric vehicle landscape. Based on Tata’s Gen 2 EV (acti.ev+) architecture, the Harrier.ev blends familiarity with futuristic design, making electrification a natural progression rather than a disruptive leap.

Interestingly, the company is providing a lifetime warranty on the battery for the first vehicle owners, applicable only to private owners. 

Anand Kulkarni, Chief Product Officer, Tata Passenger Electric Mobility, told Motoring Trends, “We have said that our Gen 2 approach is basically a pure EV approach. Much the same way, the acti.ev+, in fact, we have taken that architecture further ahead on the Harrier.ev to make sure that you can get the seating comfort of a regular SUV without any compromise on the battery or powertrain.”

While rivals explore born-electric platforms from scratch, Tata’s strategy with the Harrier.ev is different – marrying known aesthetics with a ground-up EV design. That’s not just a technical decision, but as Kulkarni stated, it’s rooted in customer behaviour.

“There is a section of people who are saying, who want the comfort and the familiarity of the product that they are using. So we have ​made a product that retains that familiarity, while giving them the benefits of electrification,” Kulkarni explained.

The Harrier.ev isn’t just about powertrains and batteries – it’s about creating a ‘third space.’ With features like a 14.5-inch Neo QLED screen and Dolby audio, Tata wants the Harrier.ev to be as comfortable and connected as a living room.

“You have office, you have home, and everything in between is where you spend a lot of time in the car. People expect it to be comfortable, convenient, connected and safe,” Kulkarni said.

Even as the EV market rapidly matures, Tata remains mindful of long-term viability. Decisions around battery size, AWD vs FWD configurations, and software-driven features were all taken with a delicate balance of affordability and future-readiness in mind.

“We worked with two sizes of batteries. This was about making the right choices,” said Kulkarni, noting how Tata’s dual-battery strategy is now industry standard.

As Kulkarni explained, For Tata, the Harrier.ev is more than a product – it's a culmination of years of foresight, strategic evolution and a deep understanding of the Indian consumer. It’s a vehicle that reflects not just where the market is headed, but how Tata Motors is determined to lead it there.

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Toyota Kirloskar Motor (TKM) has launched the Fortuner and Legender in a new Neo Drive in a hybrid avatar, featuring a 48-volt system that delivers improved fuel efficiency. The models are priced at INR 4.47 million and INR 5.09 million, respectively.  

Since its debut in 2009, the Toyota Fortuner has defined the premium SUV segment in India, admired for its rugged design, robust performance and unmatched all-terrain capabilities. The stylish and feature-rich Legender complements the Fortuner, exemplifying Toyota’s core values of quality, durability and reliability. Together, they have cultivated a loyal following among urban adventurers and off-road enthusiasts alike.

The new Neo Drive variants introduce Toyota’s advanced 2.8-litre, four-cylinder turbo-diesel engine paired with a 48V system comprising a belt-integrated starter generator and lithium-ion battery. This technology mirrors hybrid electric systems by recuperating braking energy during deceleration, contributing to smoother low-end acceleration, quieter operation and improved fuel efficiency. The Smart Idle Start-Stop function further enhances efficiency by automatically shutting off the engine when stationary, resulting in lower emissions and fuel savings.

Importantly, the company claims that these enhancements do not compromise the Fortuner and Legender’s formidable payload capacity, durability or off-road performance. The Multi-Terrain Select system optimises throttle response, braking and traction control to deliver a superior driving experience across diverse terrains.

On the design front, the Fortuner retains its bold, purposeful stance, ideal for rugged adventures, while the Legender exudes a more dynamic and premium appeal with dual-tone body colours, split LED headlamps and a sleek fascia. Both models offer dual-tone leather upholstery, soft-touch materials and ergonomic seating designed for long-distance comfort.

In terms of safety the SUVs come with ABS, Vehicle Stability Control with Brake Assist, WIL Concept Seats, Hill Assist Control, Traction Control and more. Toyota’s focus on customer convenience extends to tailored finance solutions, including up to 8-year funding plans, Toyota Smart Balloon Finance and pre-approved value-added services such as extended warranty and genuine accessories. Buyers will also benefit from five years of complimentary roadside assistance and a standard 3-year/100,000 km warranty, extendable to 5 years/220,000 km, along with the customisable Toyota Smiles Plus service package.

Varinder Wadhwa, Vice President, Sales-Service-Used Car Business, Toyota Kirloskar Motor, said, “As the SUV market in India grows steadily, customers are seeking advanced features and differentiated styling. The new Fortuner and Legender Neo Drive variants meet these expectations with bold design, powerful performance, and comprehensive features, underscoring Toyota’s commitment to delivering ever-better cars and advancing towards carbon neutrality.”

Bookings for the Fortuner and Legender Neo Drive variants commenced on 2 June 2025, with deliveries set to begin from the third week of June.

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Hyundai Motor India, a leading passenger vehicle manufacturer, has onboarded popular actor Pankaj Tripathi as its new brand ambassador.

The company shared that Tripathi, who is known for his versatility and grounded charm, embodies Hyundai India’s values of reliability, authenticity and a deep-rooted connection with the country’s diverse audience. With this association, HMIL further strengthens its ambassador lineup that already includes iconic personalities.

Tarun Garg, Whole-Time Director and Chief Operating Officer, Hyundai Motor India, said, “At HMIL, we celebrate stories of progress and inspiration. We are delighted to welcome Pankaj Tripathi to HMIL family. His grounded persona, exceptional talent and widespread appeal resonate with the values of HMIL and our vision of ‘Progress for Humanity’. Together, we aim to drive deeper emotional connections with our diverse customer base across India.”

Pankaj Tripathi, said, “It is an honour to associate with Hyundai Motor India, a brand that has long stood for trust, innovation and customer-first approach. My first car was a Hyundai, and over the years, that relationship has grown into something truly personal. As someone who deeply values simplicity, sincerity and staying true to one’s roots, I find a natural alignment with HMIL’s ethos. I look forward to this partnership where together, we can connect with people across the country - not just through technology, but through shared stories and values.”

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