Toyota Fortuner, is set to see intensified competition as automakers prepare to launch new models targeting the ₹30 lakh-plus category.
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India’s premium utility vehicle segment is set for a fresh wave of competition, as automakers prepare challengers to the long-dominant Toyota Fortuner.
This segment with base prices starting at ₹30 lakh forms less than 2 per cent of India’s total utility vehicle sales, but provides brand prestige and fat margins to manufacturers. Demand is also strong with changing buyer preferences and rising aspirations pushing customers towards higher end utility vehicles. Several of the upcoming models in the segment are expected to offer hybrid powertrains alongside conventional diesel and petrol options, emulating Toyota’s strategy in India. The first of the new line-up to arrive on Indian roads is likely to be the Majestor that JSW MG Motor unveiled last month. The price of the seven-seater SUV, which is expected to compete directly with the Fortuner, is scheduled to be announced in April.
While the joint venture of the JSW Group and UK’s MG Motor is offering the Majestor, the Indian conglomerate’s independent brand, JSW Motors, is planning to bring a hybrid SUV based on Chinese automaker Chery Automobile’s Jetour T2 as its first model. Hyundai is lining up multiple entries in the segment. The South Korean automaker plans to offer the GV80 SUV under its luxury brand Genesis in 2027, followed by a premium multipurpose vehicle in 2028. It is also expected to introduce the Staria MPV and the Palisade SUV around 2028 and 2029, respectively.
Tapping Growing Demand
Skoda Auto Volkswagen India, which sells the Kodiaq SUV in the premium segment, plans to introduce the sportier Kodiaq RS. The model could also get a hybrid variant, managing director Piyush Arora said in a recent interaction with ET. Volkswagen recently introduced the Tayron L in the segment. “The D-segment (premium SUVs) in India is gaining traction as rising incomes, startup-driven wealth creation, and a growing sense of pride and aspiration encourage customers to upgrade to bigger, safer and more premium vehicles,” said Puneet Gupta, director at S&P Global Mobility.
The segment is beginning to regain momentum as automakers expand their portfolios with new models to tap this growing demand. Attractive financing rates have helped unlock pent-up demand, making such vehicles more accessible and accelerating adoption, he added.
Led by Toyota-which has an 86 per cent share in this segment with models such as the Fortuner, Hilux and Land Cruiser-sales of utility vehicles priced above ₹30 lakh, classified as UV5 by the Society of Indian Automobile Manufacturers (SIAM), rose 5 per cent to 37,782 units in the first 10 months of fiscal 2026.
The broader UV market grew 8 per cent to 2.4 million units during this period. Two out of every three passenger vehicles sold in India today is a utility vehicle.>
