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ToggleMaruti Suzuki’s Strategic Move in the SUV Market
Maruti Suzuki, a dominant force in the Indian automotive industry with over 20% market share in the SUV segment, has set its sights on further expanding its footprint. The company is gearing up to launch two new SUVs in the next two to three years, aiming to strengthen its position in the rapidly growing SUV market. Hisashi Takeuchi, the Managing Director and CEO of Maruti Suzuki India, expressed the company’s commitment to addressing the evolving SUV trend and capturing untapped market opportunities.
Strategic Approach
Takeuchi highlighted the increasing prominence of the SUV trend, stating, “The SUV trend is becoming bigger… There are gaps, we can offer something at the bottom and something at the top; we will try to fill those gaps.” This statement underscores Maruti Suzuki’s strategic approach to cater to a wider range of customers by introducing both entry-level and premium SUV models.
Upcoming SUV Models
Maruti Suzuki’s upcoming SUV lineup includes an entry-level SUV, codenamed Y43, scheduled for release in 2026-27. Additionally, the company plans to introduce a three-row SUV, codenamed Y17, based on the Grand Vitara platform. The latter is expected to feature a robust hybrid powertrain and is slated for release in 2025. By diversifying its SUV portfolio, Maruti Suzuki aims to tap into different market segments and offer vehicles that cater to varied consumer needs.
Market Expansion Strategy
Maruti Suzuki’s move into the SUV space is not only about launching new models but also about strategic market expansion. The company aims to generate incremental sales of 2.5 lakh units per year with the introduction of these two SUVs, aligning production volumes with market demand. In the current fiscal year, Maruti Suzuki has already doubled its SUV market share to over 20%, primarily driven by the success of models such as Fronx, Jimny, and Grand Vitara.
Shashank Srivastava, Senior Executive Officer of Sales and Marketing at Maruti Suzuki, emphasized that to regain its 50% market share in the overall passenger vehicle segment, the company must capture 33% of the SUV market. This underscores the significance Maruti Suzuki places on the SUV segment in achieving its broader market share goals.
Electric Vehicle (EV) Endeavors
In addition to conventional SUVs, Maruti Suzuki is venturing into the electric vehicle space with its debut born-EV SUV based on the eVX platform. The electric SUV is scheduled for launch in late 2024, marking the company’s entry into the growing electric mobility sector. This move aligns with the industry’s shift towards sustainable and eco-friendly transportation solutions, reflecting Maruti Suzuki’s commitment to staying at the forefront of automotive innovation.
Market Dynamics and Growth Potential
The SUV segment has emerged as a powerhouse in the Indian automotive market, representing 48% of total passenger vehicle sales in 2023. With approximately 20 lakh units sold, the SUV segment outpaced other vehicle categories, experiencing over 25% growth. This growth is particularly significant in a market where traditional sedan and hatchback segments witnessed a decline.
Looking ahead, the SUV segment’s share in the overall passenger car market is expected to exceed 50% in 2024, up from 43% in 2022. Maruti Suzuki’s strategic focus on SUVs aligns with this trend, positioning the company to capitalize on the continued surge in demand for SUVs among Indian consumers.
Maruti Suzuki’s foray into the SUV market with the introduction of new models and its entry into the electric SUV space reflects a comprehensive strategy to address evolving consumer preferences and market dynamics. By filling gaps in its product lineup, the company aims to cater to a diverse audience and solidify its position as a leader in the competitive Indian automotive landscape. As the SUV segment continues to dominate the market, Maruti Suzuki’s strategic moves underscore its commitment to innovation, sustainability, and meeting the evolving needs of Indian consumers.