Car News Maruti Suzuki

Maruti small car revenue shrinks as buyers look for better cars

2015 Maruti WagonR AMT

Revenue from the company’s super compact and mid-size portfolio registered growth.

As more and more first time car buyers are looking to buy bigger and better cars, Maruti Suzuki’s revenue from small cars has been witnessing a decline. At the same time, the super compact and mid-size segments have registered considerable growth for the company.

Reflecting the change in buying pattern, Maruti’s small car (Alto and Wagon R) revenue for the first half of 2016 stood at 18.7 % which is a sharp decline compared to 22.6% during the FY2014. However super compact (products like Swift Dzire) and mid-size segment (Ciaz) registered considerable growth in revenue for the company in the first 6 months of 2016. The super compact grew from 1% to 2.9% while the mid-size segment grew from a mere 0.6% to 5.6%.

Maruti Ciaz RS Launch Price

Maruti’s revenue from mid-size segment has increased from 0.6% to 5.6% in the first half of 2016.

Always good at understanding the Indian car buyers, Maruti reacted to the shift in paradigm by focusing on mid size products like Ciaz, S-Cross, Baleno and Ertiga. The establishment of Nexa dealership network too appears to be a step in the right direction.

Also read – Maruti WagonR AMT launched

Reacting to the new trend, RC Bhargava, Chairman, Maruti Suzuki India Ltd., said that the company will continue to offer what the customer wants. He also added that Maruti will never ignore the small car segment since there are still several first time buyers who are upgrading form motorcycles to budget cars.

Maruti WagonR AMT – Photos

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Nithyanandh Karuppaswamy

Winner of national level automotive quiz competitions, Nithyanandh aka Nithz jumped into the blogosphere right after gaining a degree in Mechanical Engineering. Love for automobiles and an even greater drive to share his knowledge with the automotive community, Nithz is Deputy Editor at RushLane.

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