India, Nov. 6 -- The Indian passenger vehicles market has seen a notable change in consumer preferences following the recent GST rate revisions in September 2025, with buyers shifting towards compact SUVs while hatchbacks continue to trail despite minor gains from new entries in the segment.

In the months leading up to GST 2.0, the market had remained largely subdued, with August 2025 wholesale figures reflecting uncertainties around the rate revisions and festive season delays. Sales volumes either slightly dipped or grew marginally, with most OEMs reporting mixed performances.

The decline was more prominent in the hatchback and small cars category, which had been gradually conceding market share in recent years, falling from nearly 46...