India, May 10 -- The surging popularity of SUVs in India has diverted car buyers from the more affordable entry-level small cars over the past sevral years. Bigger cars, loaded with features and sizeable road presence, have taken precedence over the more practical small cars mostly meant for city travels. Maruti Suzuki, India's largest manufacturer of passenger vehicles, believes the compact and hatchback segments will revive as soon as by 2026. However, a sharp drop of more than 20 per cent in market share in the last six years suggests a different trend, raising questions if small cars have lost the charm.

From the 1990s, small cars led by Maruti Suzuki and Hyundai Motor were the backbone of the Indian auto industry. Car aspirants even...