Maruti Suzuki India expects the premium hatchback segment to nearly double in size to around 1.2 million units by FY31 from about 600,000 units currently, indicating continued demand for the body style even as SUVs gain a larger share of the passenger vehicle market.
The premium hatchback segment currently sells around 50,000 units a month and is growing at about 17%, while Maruti Suzuki’s sales in the category are growing faster at around 28%, Partho Banerjee, senior executive officer, marketing and sales, Maruti Suzuki India, said.
Maruti expects the overall passenger vehicle market to expand to around 6.3 million units by FY31. At 1.2 million units, premium hatchbacks would account for nearly 19% of the projected market, compared with around 11% currently.
The growth outlook comes as SUVs continue to strengthen their position in the market. SUVs currently account for around 57% of passenger vehicle sales, Banerjee said, with Maruti expecting their share to rise to around 63-64% by FY31.
“Please do not feel that SUV can be 100% in times to come,” Banerjee said, pointing to the continued scope for other body styles as the overall passenger vehicle market expands. Maruti has maintained that it remains segment agnostic and aims to cater to different customer groups rather than focus exclusively on SUVs.
Maruti’s own performance in premium hatchbacks reflects the segment’s growth potential. Its sales are growing faster than the market, helping the company gain around two percentage points of market share.
The Baleno remains Maruti’s largest contributor to the category, with monthly sales of around 16,500 units. The model accounts for roughly one-third of premium hatchback sales in the country, Banerjee said.
Maruti refreshed the Baleno on September 5 with additional features and ADAS 2.0, including pedestrian detection. The company said the technology is being introduced for the first time in the premium hatchback segment.
Banerjee said the refresh was part of the company’s product roadmap and was not driven by weak demand. “We are doing pretty well. We have a back order on it,” he said.
Demand for hatchbacks extends beyond the premium segment. The Swift sold close to 20,000 units in August, while the WagonR sold around 21,000 units, volumes comparable with leading SUVs such as Tata Motors’ Punch.
The broader passenger vehicle industry is expected to sell around 5.3-5.4 million units in FY27, Banerjee said. However, he expects year-on-year growth to moderate from October as the industry faces a higher base following last year’s GST-led surge in sales.