Despite having more than 50% of the market in practically every industry it has ever operated in, Maruti Suzuki is currently up against more competition. Changing consumer preferences and industry trends have had a big impact on the company’s small car business.
Maruti Suzuki To Launch Small Car With Hybrid Engine?
The objective of recovering a 50% market share in India is emphasized in Suzuki’s mid-term management plan.
Suzuki intends to accomplish this by launching a brand-new, distinctive small car that is aimed at first-time purchasers and those making about Rs 5 lakh a year.
It is anticipated that the new small car will have either a flex-fuel engine (FFV) or a mild-hybrid engine (M-HEV).
Suzuki’s strategy calls for the quick development and introduction of entry-level models that cater to the tastes of consumers on a tight budget.
The next small car will have a variety of powertrain choices, such as flex-fuel technology, CNG, and mild hybrid.
This car is distinct from the affordable electric vehicle (EV) that Maruti Suzuki is allegedly developing.
Models such as the Tata Tiago EV are anticipated to compete with the compact electric car.
Sales of Maruti Suzuki’s Entry Level Hatchbacks Declining
Sales of Maruti Suzuki’s A-segment (entry-level) hatchbacks are currently declining.
Small hatchbacks are becoming less popular, while SUVs are becoming more well-liked by buyers.
One of the main causes of the decline in the small car market is rising expenses and rising car prices.
Income growth in this buyer category has been slow since the COVID-19 pandemic and the implementation of BS6 emission standards.
Notwithstanding the downturn, the market still has a lot of untapped potential, particularly from motorcycle owners wishing to upgrade.
To appeal to consumers on a tight budget, Maruti Suzuki is formulating plans to launch a small car that is both appealing and reasonably priced.
With a starting price of Rs 4.09 lakh (ex-showroom), the Alto K10 is currently Maruti Suzuki’s most reasonably priced vehicle.
Another affordable choice is the Maruti S-Presso, which starts at Rs 4.27 lakh (ex-showroom).
Since other brands have shifted to higher price points, the only other car under Rs 5 lakh (ex-showroom) is the Renault Kwid.
