ET Graphics | Compact cars gain momentum

Sales of like and in the local market doubled last quarter after a gap of over three years supported by recent , which lowered the tax burden on small cars and made them significantly more affordable again.

As per industry estimates, 43,757 (less than 3.6 metre in length) were sold last quarter, which is an increase of 107% over the year-ago period.

Sales of mini cars stood at 55,133 units in , then fell steadily to close at 21,106 units in Q1 FY26—a steep 62% drop from the earlier high, as rising costs and shrinking demand pushed buyers away from entry-level cars.

Q1 MINI CAR SALES (in units)