Maruti Suzuki Plans Overhaul of Small Car Lineup

Maruti Suzuki, known for its small cars, is considering a significant change in its lineup. While it has gained traction in the SUV market with models like Grand Vitara, new Brezza, and Fronx, sales of small cars like Alto, Celerio, and S-Presso have dropped.

Strategic Shift

• The company aims to boost its presence in SUVs, EVs, and hybrids as it increases its annual capacity to 4 million units by the end of the decade.
• Suzuki Motor Corp., Maruti Suzuki’s parent company, plans to introduce 10 new models in India between FY25 and FY31, with four of them being battery EVs.
• Maruti Suzuki’s internal projections suggest that hatchback sales are expected to stabilize around 1.5 million units by 2030, constituting a quarter of all passenger vehicle sales.

Revamping the Portfolio

• To adapt to changing market dynamics, Maruti Suzuki may replace some existing hatchback models with micro-SUV styled products.
• Entry-hatch models might be redesigned to attract first-time buyers upgrading from two-wheelers.
• Despite declining sales in the overall hatchback and sedan segments, Maruti Suzuki remains committed to providing enhanced features and safety standards across its models.

Evaluation of Sedan Segment

• Maruti Suzuki is reevaluating its investments in the sedan segment, particularly for models like Ciaz, due to declining sales.
• The company is shifting its focus to high-volume products and segments that offer better economies of scale.

Safety Measures

• Maruti Suzuki plans to make six airbags standard across all its models and has subjected three existing models to voluntary crash tests for safety assessment.

With these strategic moves, Maruti Suzuki aims to adapt to evolving consumer preferences and maintain its market leadership in India’s automotive industry.

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