The new Baleno-based UV is likely to be priced much more aggressively than existing Vitara Brezza
Maruti Suzuki continues to lead the passenger vehicle segment in India by an overwhelming margin. Even though it leads the sales charts by a comfortable margin, competition is catching with more attractive offerings from rival manufacturers at competitive prices.
While they continue to lead the hatchback and sedan segments, lack of options in SUVs is starting to hurt them as rival brands already have multiple SUV / crossover options across different segments in their portfolio. Maruti is planning to add multiple new SUVs to its portfolio and now, more details about one of them has been revealed by Live Mint.
Need For Maruti To Develop New SUVs/Crossovers
The Indo-Japanese manufacturer is developing a new crossover based on its premium hatchback Baleno. It is being designed as a coupe crossover. At the Auto Expo this year, Maruti had showcased a concept, which was styled as a coupe crossover. Though that was an all electric car concept, it is possible that this new YTB crossover, could get design inspired by the Futuro-e concept.
This new coupe crossover will sit in the most competitive and coveted segment in passenger vehicles, i.e., sub-4 metre compact UV segment which already has a number of offerings from different brands. Maruti has realised that in order to counter the stiff competition in the subcompact UV space it has to introduce new products.
The said space already features Maruti Suzuki Vitara Brezza which has been a strong player ever since its launch in 2016. However, new products with more engine options, more features and more value for money proposition are making their presence felt which could affect Vitara Brezza’s sales adversely.
Kia Sonet, Hyundai Venue are the best selling cars in the segment today. They have beaten Maruti at their own game, by launching offerings which are priced aggressively, come in petrol as well as diesel and manual as well as automatic options. These cars are also fuel efficient, come with segment leading technology and features like internet connectivity, ventilated seats, etc.
The segment also has Tata Nexon and Mahindra XUV300 – both come with 5 star safety rating. As it stands, Maruti is not only losing on features, engine options; it is also losing on safety front in the segment.
Decline of Maruti in UV segment
However, competition hasn’t only intensified in the subcompact SUV space as the higher compact mid-size SUV segment has seen tremendous growth in the last few years. The company’s UV market share has reduced from 24.9% as of FY20 to 22.9% as of the first half of the current 2020-21 fiscal year.
Along with a new sub 4m UV, Maruti is also working on Seltos / Creta rivalling mid-size SUV which will replace S-Cross from its current lineup. This will be developed under Toyota and Suzuki’s global partnership. Both Japanese manufacturers will jointly develop the new C-segment SUV, which will be manufactured exclusively at Toyota’s Bidadi plant.