Maruti Suzuki India is sharpening its focus on the fast-growing sports utility vehicle (SUV) market and plans to enter the premium segment as well, managing director and CEO Hisashi Takeuchi said on Wednesday.
The company, which has long dominated the small-car space, is now looking to strengthen its SUV portfolio as the segment accounts for nearly 55% of overall passenger vehicle sales in the country. For Maruti, SUVs contribute about 28% of sales, a share that has tripled since 2020-21.
Premium SUV strategy in the works
“We are covering up to the mid-size SUV segment but the over 4.5-metre category is now becoming a decent market size. I think we definitely have to have one product in this segment. We are talking about this, and we are studying,” Takeuchi said at the launch of the company’s new mid-size SUV, Victoris.
He stressed that success in SUVs would be critical for Maruti Suzuki to regain its lost market share in the domestic passenger vehicle industry. “In order to maintain our leadership, we have to be number one in SUVs,” Takeuchi said. Mahindra & Mahindra currently leads the overall SUV market.
Maruti once commanded over half of the passenger vehicle market but has seen its share slip to around 40%. Takeuchi said that SUVs hold the key to restoring that position. “We already have a high share in the small car segment. It is the SUV segment that will drive us closer to 50% again,” he noted.
Victoris launch and future plans
The new Victoris, which will compete with Hyundai Creta, Kia Seltos and Honda Elevate, comes with multiple powertrain options including strong hybrid and CNG. It is Maruti’s first model to feature Level-2 ADAS with automatic emergency braking, lane departure prevention and blind spot warning. The SUV will be sold from the company’s Arena network, while the Grand Vitara continues to be retailed through Nexa outlets.
Takeuchi said the company has invested about Rs1,240 crore in developing Victoris, which will be manufactured at Maruti’s Kharkhoda plant and exported to nearly 100 markets. Prices were not disclosed at the launch but are expected to be in the range of Rs 10-20 lakh. Bookings have been opened for Rs 11,000, and variant-wise prices will be announced within a few weeks.
Apart from Victoris, the company plans to roll out the e-Vitara later this fiscal. Its existing SUV line-up includes the Brezza, Fronx, Jimny and Grand Vitara. Takeuchi highlighted that entry-level SUVs such as Brezza and Fronx gave Maruti a head start. “These vehicles have won the hearts of customers and helped us secure leadership in the entry-SUV space,” he said.
Even as it doubles down on SUVs, Maruti has no plans to abandon small cars. “We believe small cars will continue. They are the base of our business. But with SUVs now at 55% of sales, we cannot ignore this market,” Takeuchi added.
