Maruti Suzuki expects a 3-4% gain in market share with the launch of multiple new SUV models starting 2014-15, taking its dominance in the domestic car market back to levels seen only about five years ago. After watching its market share slip over the last few years as rivals launched a flurry of new SUV models in a segment which is among the fastest growing today, Maruti now plans to fight back as it prepares to launch 2-3 new SUVs over the next 3-4 years.

Mayank Pareek, COO for Marketing & Sales, told FE that expanding into the SUV segment will be the next key pillar in Maruti?s growth plan as it looks to expand its large range of 16 models, that today consists mostly of small cars. ?I am always asking the engineering guys to quicken their work on SUVs, it is the need of the hour. I expect to see a 3-4% jump in our market share once we roll out our SUVs. Its among the fastest growing sectors today and accounts for about 21% of car sales and we are not present there, so we are losing out,? he said.

The first SUV will be a a crossover variant of the SX4 (Code: YAD) with a higher ground clearance and boasting of several premium features, according to sources. This will be launched by end-2014, followed by a compact SUV (code: YBA) in 2015 based on the XA Alpha concept shown at the Auto Expo last year and will target the Ford EcoSport. A third larger SUV model is also expected in the premium end, which will probably replace the Grand Vitara but with a lower entry price.

While Maruti?s previous attempts at the SUV market ? the Gypsy and the Grand Vitara had meet with a lacklustre response, what will be different this time is the availability of diesel engines across its SUV range for the first time which parent Suzuki is itself developing in partnership with Maruti?s own R&D team. A diesel engine is tantamount because in the domestic utility vehicle segment, which accounts for over 20% of the 27 lakh unit passenger vehicle market, over 90% of the vehicles sold feature a diesel engine. UV sales were up 5.27% in Q1 FY14, while car sales fell 10.41% in the same period, In FY13, UV sales were up 52.2%, versus a 6.7% drop in car sales.

?I think not having SUVs is a big hole in Maruti?s range, and that market is growing very fast. Gaining market share is a big effort for any car maker. If you lose market share its very difficult to come back. One has to work three fronts, products, price and positioning. Maruti has worked on all three, they are bringing their best global products at a competitive price,? said Puneet Gupta, principal analyst at IHS Automotive India.

From a high of about 45% market share in FY11, Maruti?s market share in FY13 was down to 39%. Though auto sales have been sluggish on subdued consumer demand, in the first quarter of FY14, the company made a little over percentage gain in its market share on the back of strong discounts offers and high demand for diesel models like the Swift and Dzire.

Maruti also has the largest sales network at about 1,200 sales points, which is more than its next two competitors, Hyundai and Mahindra, combined. This is expected to give it an edge in generating strong volumes for new launches.

Maruti?s confidence of making a strong mark in the SUV segment comes from the popularity of the Ertiga MPV, which was its first major entry into the utility vehicle segment.

Launched in April 2012, the Swift platform-based Ertiga quickly climbed up the charts with initially volumes of about 6,000 units a month and today sells over 4,000 units a month.

In FY13, Maruti?s volumes were up 4.44% at 10.51 lakh units, though sales in April-June FY14 dipped 6.81% at 2.45 lakh units.