Maruti Suzuki India Limited has been introducing a host of premium products in India including the Baleno RS, Ignis and the new Dzire. That said, sales of its more practical offerings like the Alto, WagonR, which had witnessed a slight dip in sales have now gone up. The possible reason for this can be the skepticism amongst potential car buyers towards the implementation of GST (Goods and Services Tax) which favoured most segments in the automotive industry. Small petrol cars that incurred a tax of approximately 30.3 percent now have to pay only 29 per cent tax under GST. In the month of July this year compared to July 2016, the company grew by 22.4 per cent in overall domestic sales and 0.1 per cent in exports. The mini segment, which includes the Maruti Suzuki Alto and the WagonR witnessed a growth of 20.7 per cent selling 42,310 units last month compared to the same period last year. The compact category which includes the Swift, Celerio, Ignis, Baleno and the new Dzire also had 63,116 takers growing by 25.3 per cent. The mid-size segment which includes the Ciaz grew by 23.5 per cent selling 6,377 units compared to 5,162 units sold in July 2016.
Utility vehicles which include the Gypsy, Ertiga, S-Cross and the Vitara Brezza grew by a massive 48.3 percent. That’s considering the fact that the Vitara Brezza is one of the most popular compact SUVs in the country and got a significant reduction in taxes due to GST. The van category also grew by 6.6 percent which is most likely to be in the commercial vehicle sector considering that this segment consists of the Maruti Suzuki Omni and the Eeco.
It is clear that Maruti Suzuki’s focus on a premium strategy has been successful and now the company is upping the ante with the introduction of a premium service experience, Nexa Service, it is obvious that the company’s mass-market products are also selling well. Also, putting into fact that Maruti Suzuki has close to half of the market share in India and a considerable reach versus its rival brands, we expect Maruti Suzuki to maintain its market share in the Indian market in the years to come.
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