See the minis: Maruti bets on price cuts and festive offers to push bikers towards cars

Mumbai: Maruti Suzuki India is betting on aggressive price cuts, festive finance offers and a push to get more two-wheeler riders to buy cars, to drive record sales this fiscal year for its entry-level models: the Alto and S-Presso.

According to people aware of its plans, the company has set itself a target to sell between 220,000 and 250,000 mini cars in the ongoing fiscal 2026. The highest sales so far in the segment were around 247,000 units, recorded in FY20.

The increased focus on the entry-level segment comes as part of Maruti Suzuki's broader effort to arrest the erosion in its market share, which has come under pressure in recent years due to a sharp decline in small-car sales even as demand for SUVs surged.


In a sluggish passenger vehicle market, where cumulative wholesale dispatches grew only 2% in the last fiscal year ended March 31, Maruti's market share dropped to 40.9%-the lowest since FY13, when it stood at 39%. It held a share of 51% in the Indian market in FY19 and FY20.

Maruti's optimism stems from a GST rate cut on small cars, which has translated into an effective 11-13% reduction in prices, combined with a special ₹1,999 EMI finance scheme (for entry-level models) launched during Navratri to attract two-wheeler buyers. The offer will run through Diwali.

Dealers said the initiative has spurred a spike in footfalls and enquiries, especially from rural and small-town buyers, though conversions into actual bookings remain limited. "The offer is very attractive and has brought new buyers into showrooms. We expect a major pickup during Dhanteras and Diwali," said a Maruti dealer in western India.

According to Partho Banerjee, senior executive officer (sales and marketing) at Maruti Suzuki, the entry-level segment is showing encouraging signs of revival. "The response to the ₹1,999 EMI offer has been very positive. Many two-wheeler customers who earlier did not consider buying a car are now visiting our showrooms," Banerjee told ET. "We are literally seeing helmets on discussion tables - that's a very good indicator," he said, referring to the influx of two-wheeler owners exploring car purchases.

The overall booking momentum during the festive period has been strong, Banerjee said. "Just to give you a perspective, the Alto bookings in October (till date) were up around 60% compared to the same month last year."

While he declined to comment on the company's internal targets, Banerjee said bookings for cars in the 18% GST bracket, which include small cars, have risen sharply. "The contribution of these models to overall bookings is going up, but it's still early to quantify," he said.

Not everyone in the industry is convinced that Maruti will be able to hit its ambitious targets. "It's a very tall target. Over the last five years, the car buyer has become a lot more aspirational. Even a first-time buyer is not keen on an entry-level model and prefers a second-hand premium hatchback like a Baleno," said an industry executive, who did not want to be named. "So, I'm not sure if Maruti will be able to achieve the planned numbers."

Analysts believe the renewed focus on affordability could help Maruti expand its base, though at some cost to profitability. "While this initiative may come at the cost of ASPs (average selling price) and near-term margins (around 100-basis-point impact), it has the potential to improve market share and operating leverage if consumer response is positive," wrote Kapil Singh of Nomura Research in a recent note.

According to Puneet Gupta, Director, S&P Global Mobility, the sharp cut in GST could reignite demand in the fading mini-car segment. "Expect a wave of innovation in financing, product offerings, and ownership schemes aimed at reviving this category," he said.

With just 36 cars per 1,000 people, Gupta said, India's vehicle ownership remains among the lowest globally-and this move could act as a powerful catalyst, "driving millions of two-wheeler users to finally step up to four wheels".

Maruti has cut prices of its line-up by 2-21%, with the steepest reductions on the Alto, S-Presso and Celerio (13-22%). Larger models such as the Brezza, Grand Vitara and Invicto have seen cuts of 2-8%.

Banerjee said Maruti remains committed to maintaining a balanced presence across segments. "As a market leader, we must have a play across all segments-hatchbacks, SUVs, MPVs, CNG, hybrids and EVs. That's what leadership means," he said.