SUVs key to regain 50% market share: Maruti

The sports utility vehicles (SUVs) will be the key factor in Maruti’s strategy to regain half of the Indian car market as this segment has the biggest chunk of the market at about 55%, said the company’s managing director and CEO Hisashi Takeuchi on Wednesday.

India’s biggest carmaker targets to claw back the 50% market share by FY31. Maruti has been losing its market share from over 51% in FY19 to about 40% in FY25.

“We can’t ignore this (SUV) market. To maintain our leadership position, we have to be number 1 in SUVs also,” Takeuchi said after the launch of mid-size SUV Victoris. While the company did not disclose the pricing and sales expectations of the model, it looks to become a leader in the SUV space through Victoris. The model will be sold through its Arena channel, providing the company a much wider reach compared to its premium channel Nexa.

Currently, 28% of Maruti’s sales come from SUVs. The company is the biggest player in the compact SUV segment with models like Brezza and Fronx. Its overall share in the SUV market in FY25 was about 20%, while Mahindra had the largest share at 23%.

“In small cars, we are enjoying very high market share already. Our task is how to maintain this. The key (to regain 50% market) is how much we get successful in the SUV segment.”

With a focus on SUVs, the company will also continue to develop and introduce new models in the small car segment.

“We have not forgotten small cars. It is our core business. We will continue developing the small car segment. Some will be full model changes while others will be new models,” Takeuchi said.

As of FY25, Maruti holds over 70% of the hatchback market and 50% of the sedan market. Maruti contributes about 60% of Suzuki’s global production and 40% to revenue. India is the only market where the Japanese carmaker has a leadership position.

Export opportunity

Suzuki is also utilizing Maruti’s production capability to export vehicles and shifting its export portfolio to India. The country offers favourable production cost to the company, allowing it to grow its export volumes at a faster pace.

“Export is becoming more and more important for us. We can export at a very competitive price from India and offer reliable products for the global market. Suzuki is utilizing Indian (Maruti’s) production facilities more strongly for exports. (Our) volumes are growing at a much faster pace now,” Takeuchi said.

The company has plans to export Victoris. It is already exporting its first electric car, e-Vitara, to more than 100 countries. According to a September 1 statement by Maruti, the company has already shipped over 2,900 units of e-Vitara to 12 European countries.

In FY25, Maruti exported 332,585 units, posting a rise of 17% from the previous financial year. In a recent sales call, the company’s senior executive officer – marketing & sales, Partho Banerjee, said that Maruti is looking to offset the impact of the sluggish Indian car market through exports.