The Indian large SUV market witnessed significant developments in June 2025, with the Toyota Fortuner maintaining its commanding position while the Jeep Meridian demonstrated remarkable growth momentum. This comprehensive analysis examines the performance metrics, market dynamics, and competitive landscape that shaped the premium SUV segment during this crucial period.
Market Overview: A Segment in Transition
The large SUV segment in India continues to represent the pinnacle of automotive aspirations for premium buyers. Continuing its run at the top spot, Toyota Fortuner posted sales of 2,743 units in June 2025. This accounts for a 3% YOY growth as 2,675 units of the SUV were sold in the same time period last year in 2024. Similarly, Fortuner saw an increase of 7% in MOM sales. This performance underscores the segment’s resilience despite challenging market conditions and increasing competition from mid-size alternatives.
The total large SUV market, while smaller in volume compared to compact and mid-size segments, represents significant value for manufacturers due to higher profit margins and brand positioning benefits. The segment’s appeal stems from offering genuine off-road capabilities, commanding road presence, and status symbol value that resonates with India’s growing affluent class.
Toyota Fortuner: The Undisputed King
Sustained Market Leadership
The proven bulletproof reliability coupled with the brand value associated with the Toyota badge is one of the main reasons behind the SUV’s consistent sales. The Fortuner’s dominance extends beyond mere numbers, representing a cultural phenomenon in Indian automotive preferences.
Product Innovation and Enhancement
June 2025 marked a significant milestone for Toyota with the Japanese carmaker introduced the Fortuner Neo Drive in June with the 48V mild-hybrid system. This technological advancement demonstrates Toyota’s commitment to environmental sustainability while maintaining the SUV’s renowned performance characteristics.
The mild-hybrid system offers improved fuel efficiency without compromising the vehicle’s legendary off-road capabilities. This strategic move positions the Fortuner ahead of competitors in meeting evolving emission norms while satisfying customer demands for advanced technology.
Market Positioning Strategy
The Fortuner’s success stems from its unique positioning as a premium yet practical choice. Unlike luxury alternatives that may compromise on durability, or budget options that lack prestige, the Fortuner strikes an optimal balance. Its reputation for retaining value, minimal maintenance issues, and ability to handle diverse Indian road conditions creates a compelling ownership proposition.
Jeep Meridian: The Rising Challenger
Impressive Growth Trajectory
It is followed by the Jeep Meridian which managed to sell 107 units last month, as compared to 65 units in June 2024. This represents a remarkable 65% year-on-year growth, making the Meridian the standout performer in terms of growth rate within the segment.
Strategic Market Entry
The Meridian’s success reflects Jeep’s strategic approach to the Indian market. By offering a seven-seater configuration and positioning itself as a premium alternative to the Fortuner, Jeep has created a distinct market niche. The vehicle’s American heritage, combined with localized manufacturing, appeals to buyers seeking differentiation from Japanese reliability narratives.
Competitive Advantages
The Meridian’s surge can be attributed to several factors. Its modern design language appeals to younger buyers, while the spacious seven-seater configuration addresses practical family needs. Additionally, competitive pricing compared to the Fortuner makes it an attractive proposition for value-conscious premium buyers.
Competitive Landscape Analysis
Skoda Kodiaq: Maintaining European Presence
The Skoda Kodiaq stood at the second spot with 130 units in the bag, registering a YOY de-growth of 5%. The SUV also lost by 38% in the MOM comparison. Despite declining numbers, the Kodiaq maintains its position as the premium European alternative in the segment.
The Kodiaq’s performance reflects broader challenges facing European brands in India’s price-sensitive market. However, its continued presence demonstrates sustained demand for European engineering and luxury features among discerning buyers.
Volkswagen Tiguan: Struggling for Relevance
The latest Volkswagen Tiguan, which is currently selling in its R-Line guise in India, posted single-digit sales of only 5 units. It witnessed a negative growth of 94% in the YOY sales chart and similarly, the MOM sales saw a 67% dip. The Tiguan’s poor performance highlights the challenges of premium import positioning in a value-conscious market.
The SUV’s CBU (Completely Built Unit) import strategy results in prohibitive pricing, limiting its appeal to a very narrow buyer segment. Volkswagen is also offering up to Rs. 3 lakh discount on the SUV in July 2025. This aggressive discount strategy indicates the brand’s recognition of pricing challenges.
Market Dynamics and Consumer Trends
Economic Factors Influencing Purchases
The large SUV segment’s performance reflects broader economic trends affecting premium automotive purchases. Rising disposable incomes among urban professionals, coupled with increasing aspirations for lifestyle products, continue driving demand. However, economic uncertainties and inflation concerns create purchasing hesitation among potential buyers.
Technology Integration Expectations
Modern large SUV buyers increasingly expect advanced technology features previously reserved for luxury vehicles. Hybrid powertrains, advanced driver assistance systems, and connectivity features are becoming standard expectations rather than premium offerings.
Brand Loyalty Patterns
The segment demonstrates strong brand loyalty characteristics, with existing owners often upgrading within the same brand family. This pattern particularly benefits Toyota, whose extensive service network and parts availability create switching barriers for competitors.
June 2025 Large SUV Sales Performance Table
| Brand/Model | Units Sold | YoY Growth | MoM Growth | Market Share |
|---|---|---|---|---|
| Toyota Fortuner | 2,743 | +3% | +7% | ~85% |
| Skoda Kodiaq | 130 | -5% | -38% | ~4% |
| Jeep Meridian | 107 | +65% | – | ~3% |
| Volkswagen Tiguan | 5 | -94% | -67% | <1% |
Future Outlook and Market Predictions
Emerging Competition Threats
The large SUV segment faces increasing pressure from sophisticated mid-size alternatives offering similar features at lower price points. Electric vehicle adoption may also reshape buyer preferences, forcing traditional players to accelerate electrification strategies.
Manufacturer Strategic Responses
Automakers are responding through product diversification, localization initiatives, and aggressive pricing strategies. The introduction of hybrid technologies and enhanced feature sets represents attempts to maintain premium positioning while addressing evolving buyer expectations.
A Market in Evolution
June 2025’s large SUV performance data reveals a market characterized by established leadership and emerging disruption. While the Toyota Fortuner maintains overwhelming dominance through proven reliability and brand strength, the Jeep Meridian’s impressive surge demonstrates opportunities for well-positioned challengers.
The segment’s future will likely depend on manufacturers’ ability to balance traditional SUV attributes with modern technological expectations. Success will require maintaining off-road capabilities and durability while incorporating advanced features and environmental consciousness that contemporary buyers demand.
Frequently Asked Questions
Q: Why does Toyota Fortuner dominate the large SUV market in India? A: The Fortuner’s dominance stems from proven reliability, strong resale value, extensive service network, and brand reputation built over years of consistent performance in Indian conditions.
Q: What factors contributed to Jeep Meridian’s 65% growth in June 2025? A: The Meridian’s growth is attributed to competitive pricing, seven-seater configuration, modern design, and differentiated American brand positioning compared to established Japanese alternatives.
Q: How significant is the large SUV segment compared to other SUV categories? A: While smaller in volume than compact and mid-size segments, the large SUV segment represents high-value sales with significant profit margins and strong brand positioning benefits for manufacturers.