In the meanwhile, Maruti Suzuki will focus more on SUVs, while MPVs and hatchbacks will do the heavy lifting.
It doesn’t take a genius to figure out that Maruti Suzuki is India’s largest passenger vehicle manufacturer. They have a stronghold over the majority of the markets they penetrate. Their sales, on the other hand, have been declining in recent years, as seen by the market share report.
In FY22, Maruti Suzuki had a market share of 43.65% in the PV segment, down from 51.22 percent in FY2020. Maruti Suzuki has a 66.5 percent market share in non-SUV segments last year. They also achieved a 61 percent market share in the MPV segment. At the same time, its market share in the SUV sector was only 12%.
Maruti Suzuki Aims To Become India’s No. 1 SUV Manufacturer
The failure to launch enough SUVs to match market demand has been the primary reason for Maruti’s market share loss in recent years. Currently, Hyundai and Tata Motors are the market leaders. Hyundai sold 2.5 lakh SUVs in FY22, whereas Tata sold 2.05 lakh SUVs.
Mahindra is catching up as well. Maruti Suzuki, on the other hand, sold 1.34 lakh SUVs in FY22. According to the Economic Times, Maruti intends to more than quadruple this in FY23, with a target of 3 lakh SUV sales, beating out Tata and Hyundai.
Maruti Suzuki aspires to have at least 50% market share in all sectors at any one time. It is extremely tough to achieve in a market like India, where car purchase patterns are fast evolving toward lifestyle-oriented and feature-rich vehicles.
Maruti Suzuki must compete in the Indian market across all segments, particularly SUVs. Maruti Suzuki is moving its concentration in this direction by releasing more SUVs to the market. Maruti Suzuki’s 43.65% market share in India is primarily due to its low-cost hatchbacks and MPVs.
With the exception of the Brezza, they’ve never had much success with SUVs. They owned a Grand Vitara that never flew.
Gypsy was also available, although it was too old to compete with modern automobiles. The S-Presso isn’t really an SUV. The S-Cross is a crossover, as the name implies, although it has yet to be recognized as an SUV.
As a result, it’s just the Brezza. The remaining vehicles account for a significant portion of Maruti Suzuki’s sales. Despite the void in the SUV segment, this has kept sales high.
Another issue contributing to Maruti Suzuki’s sales decrease is the absence of a diesel engine in its lineup. Despite Maruti Suzuki’s efforts to move the country toward a cleaner future, diesel-powered passenger cars continue to be in high demand. Manufacturers such as Tata, Mahindra, and Hyundai are now celebrating in this location.
Maruti Suzuki has made a concerted effort to replace diesel-powered vehicles with CNG vehicles, and it has surprisingly succeeded. CNG is used in almost 48% of Ertiga MPVs sold today. In India, CNG is becoming more widely acknowledged as a diesel alternative, and demand for CNG-powered vehicles is increasing. This is mirrored in the fact that luxury vehicles such as the Alcazar, Creta, and Seltos have been testing CNG options as well.
Maruti’s Upcoming SUVs
By the end of this month, Maruti Suzuki will replace the current-generation Brezza with a new model. While the future Brezza will cater to the B-segment SUV market, the company’s Creta-rivaling SUV codenamed YFG would cater to the C-segment SUV market.
The YFG, which was co-developed with Toyota, is slated to have a mild hybrid and a high-voltage hybrid option, making it the most technologically advanced SUV in the market.
Baleno Cross, designated YTB, will be the next SUV. Early next year, it is slated to make its premiere at the 2023 Auto Expo. After that, Maruti will launch the 5-door Jimny, which will compete in the lifestyle offroad sector with Mahindra Thar and Force Gurkha. Maruti Suzuki’s Brezza will fight against Tata Nexon, Toyota Urban Cruiser, Mahindra XUV300, Hyundai Venue, and Kia Sonet, among others.
Maruti Suzuki will fight with the Hyundai Creta, Kia Seltos, Toyota’s upcoming D22 (HyRyder), MG Astor, VW Taigun, Skoda Kushaq, and the impending Scorpio-N with the upcoming YFG. Maruti Suzuki is aiming for a front seat in the SUV competition in this method, breaking their SUV sales jinx.
The total number of cars sold in India this fiscal year is estimated to be about 36 lakh. If we assume 30-40% of those are SUVs, we’re looking at around 12-14 lakh SUV sales in FY 2023. If Maruti manages to sell 3 lakh SUVs in FY2023, it will account for 25% of the SUV market share.