The auto industry is riding on the SUV wave, but that has not stopped company from focusing on sedans, despite a flat performance from the category.

Maruti, India's largest carmaker, released a highly upgraded version of Dzire sedan earlier this month, with an aim to gain numbers with the new model. "This is not just an upgrade, but we have added all new features including six airbags and a five-star safety rating to make it as good as it can get," Maruti MD & CEO Hisashi Takeuchi told TOI, adding that sedans should not be left behind in modernisation in the age of SUVs.

Honda, a sedan-focused company (for long the City has been its best-seller), has invested a big amount in its Amaze sedan, which has been upgraded "just for the Indian market", said company VP Kunal Behl to TOI.

"While SUVs are surely the flavour of the season, the real feel of a car still comes from a three-box sedan and there are many customers who want them. Also, many are ditching the hatchbacks for feature- and design-rich sedans," Behl added.

The market share of sedans has shrunk from 20% to 9%. However, this has not stopped companies like Volkswagen and Skoda from entering the market with twin sedans (VW's Virtus and Skoda Slavia). The cars have a high ground clearance of around 180mm to keep them at par with some of the entry SUVs.

Even luxury carmakers like Mercedes-Benz recently unveiled new generation of its E-Class sedan, which is not just the largest-selling car in its portfolio, but also across the luxury industry's line-up. Sedans still contribute 45 to Mercedes' India business, MD & CEO Santosh Iyer said.

Partho Banerjee, senior executive officer for sales & marketing at Maruti, said "sedans have their own standing" in the market.