Maruti Suzuki, which has historically purchased one of every two vehicles on Indian roads, had begun to lose market share as a result of the popularity of SUVs. Just weeks after introducing two models, a redesigned lineup of SUVs has already received 100,000 reservations, giving the Japanese automaker the confidence necessary to dominate the market despite rising prices or rising mortgage rates.
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The recently released Maruti Brezza and the soon-to-be-released Grand Vitara have improved Maruti’s reservation numbers. According to global trends in automobile purchasing, senior government director at Maruti Suzuki Shashank Srivastava told ET that SUVs should account for half of the Indian passenger car market.
To meet market needs, we are strengthening our SUV portfolio. The Brezza and Grand Vitara have received positive customer feedback. Customers are interested in the powerful hybrid technology, said Srivastava. The Grand Vitara is available for about half of the pre-orders. The Maruti Suzuki Grand Vitara will be equipped with powerful hybrid technology from Toyota.
Overall, the company has secured 75,000 reservations for the Brezza and an additional 26,000 reservations for the Grand Vitara, which will go on sale next month.
Maruti SUV’s Market Share
Currently, over 40% of all passenger cars sold in the local market are entry-level and mid-range SUVs. Despite the company’s market share in passenger vehicles increasing slightly to an all-time high of 67%, according to Srivastava, the lack of product interventions in the SUV class caused the company’s overall market share to decline to 44% in the most recent financial year.
The local market saw 652,000 entry-level SUVs and 520,000 midsize SUVs throughout the previous fiscal year. “ During the next three to five years, we expect the SUV market to grow at a CAGR of 9 to 10%”. He said it is a battle cry for us to improve our standing in this area.
People aware of the company’s plans said that a variety of SUVs priced up to Rs 20 lakh are in the works. Hyundai, a South Korean automaker, now dominates India’s SUV market. During the most recent fiscal year, it sold a few quarter million SUVs with a market share of 22%.
Tata Motors’ SUV sales are currently neck-and-neck with Hyundai Motor India. In FY22, Tata Motors purchased 205,000 SUVs, accounting for 18% of the market. Mahindra & Mahindra held a 14% share. With the Brezza, Maruti Suzuki had a market share of 12%.