India’s leading car manufacturer, Maruti Suzuki, has been a dominant force with more than 50% market share in almost every segment they operate. However, that is not the case anymore as competition has intensified and Maruti’s small car business has taken a major hit with changing trends in the industry.
As revealed in Suzuki’s Mid-Term Management Plan, the company is determined to regain 50% market share in India. In the plan, Suzuki highlighted the need for introduction of a new and unique small car for India to attract first-time car buyers and car buyers earning around Rs 5 lakh annually.
New Maruti Small Car
Where powertrains are concerned, this new small car under consideration for India, is likely to come equipped with a mild-hybrid engine or a flex fuel engine. In their Management Plan, Suzuki mentions rapid development and introduction of entry segment products meeting preferences of entry-model customers.
As seen in the plan, this entry-level car will come equipped with an M-HEV (mild hybrid engine), CNG and FFV (Flex Fuel Vehicle) powertrains. It has to be noted that this is different than the low-cost EV that Maruti Suzuki is speculated to be working on. This small electric EV will rival the likes of Tata Tiago EV.
Maruti Suzuki is currently facing slowdowns in sales of what it calls A Segment vehicles. The entry-level and small hatchback segment is consistently showing sales decline, while SUVs are gaining popularity. The rise in costs and car prices are some of the main reasons why this segment is sustaining sales decline.
What to expect?
Post BS6 emission norms and Covid-19 pandemic, there hasn’t been much rise in income for buyers in this price category. That said, there is still immense potential in this segment as there are many customers upgrading from motorcycles. Maruti Suzuki is coming up with innovative plans to carve out a desirable vehicle at an affordable price tag.
Currently, Alto K10 is the company’s most affordable vehicle and it starts from Rs 4.09 lakh (Ex-sh). The company also has S-Presso that starts from Rs 4.27 lakh (Ex-sh). Renault’s Kwid is the only other vehicle that starts from under Rs 5 lakh (Ex-sh), while other brands have climbed up the ladder of pricing.
