The first Maruti Suzuki car to get its own hybrid powertrain will be the Fronx, scheduled for launch next year. The company’s current crop of hybrid models like the Grand Vitara or the Invicto sport the Toyota Hybrid System. Maruti will continue to use Toyota-supplied strong hybrid setup for its high-end hybrid SUVs. So why the Fronx?
In 18 months flat, Maruti Suzuki’s Fronx have zipped past older stablemates Alto, Wagon R, Dzire, Grand Vitara, and Baleno to become the company’s fourth-highest-selling car after the Ertiga, Brezza and Swift. With 16,419 units, it is right behind Brezza (16,565) in the list of top-selling cars this October.
Launched on April 24, 2023, this Baleno-based SUV took 10 months to reach 1 lakh-unit sales (in January 2024), but just seven months for the next lakh (in September 2024). Cumulatively, it has sold 205,436 units – and is the fastest car in history to cross 2 lakh-unit sales (17 months).
So the Fronx, which competes head-on with the Hyundai Exter and Tata Punch, would be the kingpin of the company’s hybrid strategy.
Maruti Suzuki might have fumbled its diesel strategy by exiting that segment in a hurry and also fallen behind in the EV race, but it has already put in motion its hybrid strategy when most of its rivals don’t even have a clear plan. The hybrid race could turn out to be the most important one to win over the next few years, say analysts.
“The Fronx was a smart move by Maruti Suzuki,” a former employee told FE. “The SUV market was exploding in 2022, but Maruti Suzuki had just two SUVs – the Brezza in the Rs 8-14 lakh space, and the Grand Vitara from Rs 11-20 lakh. To attract more buyers, it needed another model. Instead of working on an all-new small SUV – which can take years to develop – it took the bestseller Baleno, added a large grille, changed the headlamps, increased ground clearance, fitted bold-looking alloy wheels, added roof rails, a skid plate at the rear… basically, made it look like an SUV, and sold it likewise.”
Despite the increase in price (about Rs 80,000 over the Baleno, trim-to-trim), customers thronged the showrooms. In its first month (April 2023) Fronx sold 8,784 units – almost half of Baleno (16,180 units). It picked up pace since then and in April this year, Fronx (14,286 units) overtook the Baleno (14,049 units). This year, sales have averaged 13,060 units per month, and over the last four months higher than the Baleno on which it is based.
Business & brand-strategy expert Harish Bijoor told FE that the Baleno has been in India for a long time, and the Fronx is a new way of showcasing the Baleno. “The Fronx is aspirational, it is Baleno++, and that’s what people want. They want sexier cars, and the Fronx is a sexier offering than the Baleno.”
The Fronx, however, isn’t a true-blue SUV such as the Jimny. “It’s a soft-roader, and not a 4×4, off-road SUV, and buyers know that,” a Gurugram-based dealer told FE. “Most buyers simply want an ‘SUV look’, and not ‘SUV capability’. The Fronx – with its Grand Vitara-like bold personality but at 40% less price – meets the needs of most buyers. Critics call it a hatchback branded as an SUV.”
An automotive analyst told FE that there are two reasons for Maruti Suzuki to introduce a strong hybrid powertrain in the Fronx. “One, its sales volumes are growing, and therefore the return on investment would be quick. Two, the Fronx is the only Maruti Suzuki model to be exported to Japan, and the Japanese market is quickly shifting towards strong hybrid cars. For the Fronx to remain competitive in Japan, it needs a hybrid powertrain.”
The Fronx is also a perfect example of solid return on investment. Although Maruti Suzuki hasn’t shared its development costs, an automotive analyst told FE that it was developed at one-tenth the cost of an all-new SUV. “If an all-new SUV costs, say, Rs 1,000 crore to develop from scratch and takes 3-4 years, the Fronx was possibly done in Rs 100 crore and in less than a year,” he said. “Imagine the returns!”