Maruti Suzuki Expects Small Car Revival Next Fiscal
The Swift-maker also said that it will come out with a holistic solution for the launch of its electric vehicles.
Maruti Suzuki India Ltd. expects a revival in the small car segment by the end of financial year ending March 2026, according to a top company executive. The auto major will enter the electric vehicle market with a holistic plan, he said.
The car penetration in the country is bound to go up as the penetration currently is only about 32 per 1,000 people, Partho Banerjee, head of sales and marketing told NDTV Profit. Practically, it is not possible for all customers to directly migrate to higher-end cars and "there has to be a stepping stone in between."
The entry-level prices have risen given the different regulations that were brought up to enforce safety norms, Banerjee said. The monthly household income of target customers has not gone up and there needs to be catching up, he said. "By the end of FY26, I think we will see a revival in the small car segment".
In August alone, the automaker sold about 16,000 Wagon R models, reflecting an improved demand for the small car segment. "I think it is not the product which is the problem but the affordability issue."
'Holistic Plan' When Entering EV Space
The Swift-maker will come out with a holistic solution for the launch of its electric vehicles and it's "not just the product that we will launch". Banerjee batted for a robust charging infrastructure for mass EV adoption.
Electric cars will be a priority objective for Maruti Suzuki and the first car in the segment will enter into production in a few months, Chairman RC Bhargava said earlier. It will only have six electric cars in line-up by 2030, he said.
The automaker's hybrid model is contributing about 16% of overall monthly volumes, Banerjee said.
"In 2023, one of four Maruti cars sold was CNG. In FY25 so far, it’s one out of three. We are seeing a growth to the tune of 30%." There is a huge demand for CNG vehicles and the company is tying up with city gas distributors. 14 Maruti Suzuki models have a CNG powertrain, he said.
Maruti Suzuki is bullish on festive season demand. "Initial response that we have seen from markets where the festivals session started is very encouraging...I'm very hopeful and seeing green shoots coming."
The automaker is seeing good traction from the rural market, he said. "Last month (August) our rural sales was 50% for the first time." With good monsoon and a good harvest, the company will improve sales in rural areas, he said.
