Maruti Suzuki understands the Indian Market so commits to affordable cars, balancing budget-conscious buyers’ needs and expanding SUV offerings.
In a rapidly changing automotive landscape, Maruti Suzuki, India’s largest carmaker, reaffirms its dedication to budget-conscious consumers. As the small and affordable car segment continues to shrink, with many automakers exiting this space, Maruti Suzuki stands firm in addressing the needs of those who cannot afford expensive vehicles. Chairman RC Bhargava assured shareholders that the company remains committed to producing low-cost small cars, even as it expands into SUVs and higher-cost models.
Key Highlights:
- Maruti Suzuki remains committed to budget-conscious buyers despite the market’s SUV trend.
- Chairman RC Bhargava emphasizes the company’s dedication to low-cost vehicles.
- The entry-level car market share has dropped from 33% in 2015 to less than 1% in 2023.
- Maruti Suzuki believes the small car segment will recover next year.
- Only 3% of Indians own cars, highlighting growth potential in the market.
Maruti Suzuki Commitments for Affordable Cars.
Since the COVID-19 pandemic, India’s small and affordable car market has seen a steady decline, with hatchbacks losing ground to the increasingly popular SUV segment, which now accounts for around 50% of industry volume. The cost of small cars has risen disproportionately compared to income growth, making them less accessible to many potential buyers. As a result, the share of entry-level cars has dramatically dropped from 33% in 2015 to less than 1% last year.
Despite this downturn, Maruti Suzuki’s management is optimistic about a recovery in the small car segment next year. Bhargava highlighted the importance of small cars in attracting first-time buyers and sustaining the growth of India’s passenger vehicle market. The company’s recent launch of a new version of the popular Swift hatchback demonstrates its commitment to revitalizing this segment.
In the fiscal year 2023-24, India’s passenger vehicle volumes reached a record 4.2 million units, maintaining its position as the third-largest car market globally. However, the growth rate has been slowing and is expected to continue at a modest pace. Maruti Suzuki’s managing director and CEO, H. Takeuchi, pointed out that only 3% of Indians currently own cars, indicating significant growth potential. He expressed his personal mission to bring the joy of mobility to as many Indians as possible.
While focusing on affordable vehicles, Maruti Suzuki is also enhancing its SUV offerings to regain its previous market share of over 50%. The company is strategically balancing its portfolio to cater to diverse consumer needs, ensuring that it remains a key player in India’s automotive industry.
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