Maruti Suzuki, the India’s largest carmaker, now faces the task of ramping up its efforts in the SUV segment to compete with Mahindra & Mahindra, Hyundai, Kia, and other manufacturers. Maruti Suzuki recently stated in a conference call following its earnings, that it has a 48 percent overall market share, with the SUV (sport utility vehicle) segment being the only barrier to a higher market share. However, thanks to the addition of the Urban Cruiser and Glanza, which were developed in collaboration with Toyota, the company now has a market share of more than 51%. And this gap comes even though the company has marked a great success with its entry-level SUV offerings like Vitara Brezza.
Even though Maruti’s entry-level SUV offerings like the Vitara Brezza have performed well, the company’s presence in the SUV segment is limited. According to BCCL Maruti Suzuki, the company has a 48 percent overall market share, with the SUV segment serving as the only impediment to a higher market share. Even though the company’s entry-level SUV products, such as the Vitara Brezza have performed well the struggle is evident.
“The SUV segment is one of our current market share constraints. Of course, with the Brezza, we are the industry leaders in the entry SUV segment. Our market share in the mid-size SUV segment is small. We have the S-Cross, which we just launched in August with a new engine, but it has brought us suboptimal results so far, which we intend to improve in the coming years”, said R.C. Bhargava, Current chairman of Maruti Suzuki.
Maruti is losing market share due to a shortage of SUVs in the premium and mid segments. The only two vehicles that have kept the business alive in the SUV market are the Vitara Brezza and Ertiga. In the last three years, sales of the same have been decreasing.
“The management also stated that they are aware of the need to act on the overall product strategy for the SUV market, paying close attention to this part, and you’ll see some action there. Growing Maruti Suzuki’s product offerings in the SUV segment may result in increased revenue, and create a product that looks like an SUV, you’ll be able to localize it and save money, and there’s certainly a market for it”, said Ashwin Patil, auto analyst at LKP Securities.
“They’re Maruti Suzuki will now focus on the middle and premium markets, where they do not currently have a strong presence. They have a stronghold in the lower SUV segment. Maruti has plenty of competition, from Mahindra & Mahindra to newcomers like Kia and Hyundai, even if it wants to step up its game in the market. Kia, the South Korean automaker, already has three famous models Seltos, Sonnet, and Carnival and aims to expand its presence in India. Hyundai Creta, on the other hand, is a strong rival to Maruti’s Brezza. SUVs account for 45.8% of Hyundai’s sales in India”, added Ashwin Patil.
