Small cars to remain Maruti's core, SUVs to help gain market share: Hisashi Takeuchi, MD Maruti Suzuki

Maruti Suzuki is working on strengthening its presence in the highly competitive SUV space as it is key to grow the company's share in India's automobile market, managing director Hisashi Takeuchi said on Wednesday.

Maruti Suzuki, which had a market share of 39% in India's automobile market in the first quarter of this fiscal year, is aiming to reclaim by the end of the decade the 50% share it once had in the domestic market.

While the local unit of Japan's Suzuki Motor has a strong footprint in the small-car segment and will continue to bring in full model changes and new vehicles in the category, Takeuchi said the company is now putting a lot of focus on the SUV segment.


"SUVs now account for 55% of car sales in India. While small cars will continue to remain the core of our business, growing footprint in the SUV segment is key to increasing our market share," he said.

Over the past few years, the company has undertaken a strategic approach to expand the SUV portfolio, he said. "We began by establishing a strong foundation in the entry-SUV segment with models like the Brezza and the Fronx. These vehicles have helped us secure a leadership position in the entry-SUV segment. Our SUV contribution to total sales has grown nearly threefold, rising from 8.9% in FY20-21 to nearly 28% in FY24-25."

SUVs currently account for about 28% of Maruti Suzuki's sales volume.

Takeuchi expects the company's latest model, Victoris, to further strengthen its presence in the mid-size SUV segment, which is seeing "strong customer interest".

The Victoris - deliveries of which will start this Navratri - will be sold through the Arena network of Maruti Suzuki.

Takeuchi declined to specify any sales target for the model but said: "We are looking at big volumes. We are not only going to sell this vehicle in the domestic market, but will also export it to 100 countries globally."

Maruti Suzuki has invested Rs 1,240 crore in developing the model. This vehicle will be the first to be manufactured at its facility in Kharkhoda, Haryana.

Takeuchi said the company is looking at introducing more SUV models. "We are (also) studying opportunities in the premium SUV space," he said, adding: "India has the largest youth population in the world, who will drive growth and become our current and future customers. Being a market leader, it is important for us to cater to all sets of customers."

For this fiscal year, it had planned two SUV launches. "One is, of course, the eVitara, our first battery electric vehicle. And now it is Victoris," he said.