In a first, small cars are a no-show

The disappearance of small cars from consumer aspirations has been cemented at the Bharat Mobility Global Expo 2025, which commenced on Friday.

- SWARAJ BAGGONKAR

For the first time since the inception of the premier event, not a single compact car launch has been lined up, despite over 40 product unveilings planned.

The compact car segment, once the backbone of the industry, was established in 2006 when the Centre introduced preferential tax structures to make car ownership affordable and position India as a small car production hub. Now, this segment is teetering on the edge of obsolescence.

Analysts say a combination of factors has driven compact cars out of favor. For instance, regulatory changes for stricter emission and safety standards, coupled with persistent inflation, have pushed car prices up by 55-60% over the last eight to nine years. Simultaneously, fuel prices have surged by 70%, making entry-level car ownership increasingly unaffordable.

Meanwhile, the market has gravitated toward mid-size and large SUVs. These vehicles, priced two to three times higher than entry-level cars, have captured the imagination of buyers with their semi-autonomous driving capabilities, advanced safety features, and in-car entertainment systems.