Despite the SUV craze, Maruti Suzuki is not ready to give up small cars. Here’s why

However, the decline of the company’s entry-level small car Alto, from being the best-selling model for a long time to no longer being among the top ten best-selling models in the country, makes it “sad”, Takeuchi said, it was. Necessary due to growth of car market in India.

Speaking at the launch of the new generation of its premium hatchback Swift here, he noted that the company will continue to refresh its small car portfolio while also filling gaps in its product portfolio as it aims to cater to diverse customer needs. To sell 40 lakh units by 2030-31.

Takeuchi noted that the entry-level segment is a high-volume vertical even as demand for SUVs continues to grow.

“For us to maintain a leadership position, it is important to cater to different customer segments. The hatchback segment is a high-volume segment in India, accounting for around 28 percent of total passenger vehicle sales,” Takeuchi said.

Also Read: 2024 Maruti Suzuki Swift Launched ₹6.50 lakhs

Interestingly, the premium hatchback segment contributes about 60 per cent to the total hatchback sales, he noted. “As the market leader, we took it upon ourselves to reactivate the hatchback segment at a time when this segment really needs a catalyst for growth,” Takeuchi said. He noted that the company strongly believes in India’s growth story. “As the government aims to make India a developed country by 2047, we can expect increased economic activity and strong demand for automobiles in the coming years,” Takeuchi said.

Also See: Maruti Suzuki Swift 2024 Launched At ₹6.50 lakhs

With only 32 vehicles per 1,000 people compared to more than 600 in developed countries like Japan, India presents a huge pool of car aspirants, he said. “As car ownership increases, the hatchback segment will serve as an entry point for many consumers and thus expand,” notes Takeuchi.

Hence, the hatchback segment will remain relevant for India and the company’s focus will continue to be on this segment, he added.

The auto major expects the premium hatchback segment to grow from 7 lakh units currently to 1 million units annually by 2030. The small car segment, which once dominated the Indian total passenger vehicle market, now accounts for less than 30 percent.

Takeuchi said the company wants to maintain a high market share in the hatchback segment. “The situation is very good for us because everyone has stopped selling hatchbacks, so the total market may be down but our share is very high,” he said.

Maruti Suzuki currently holds around 69 percent market share in the small car segment. Takeuchi noted that sooner or later with economic growth, people will start buying hatchbacks again and then the company’s high market share will help it a lot. “So we will not leave segments. Our strategy is to have adequate products in each segment,” he said.

When asked if the company would consider introducing a small electric car, Takeuchi said the company aims to introduce EVs at multiple price points. The company’s first EV model will come with an SUV body style, he said.

Responding to a question about the Alto no longer being the best-selling car, Takeuchi said: “In the market in general, people’s preferences towards cars will not always be the same, so it is changing.”

He continued: “So I am sad…India’s economy is growing and people will have different choices. In the past, there were not so many choices available and people’s purchasing power was also limited. But now people are growing, economy is growing. and more choices are available.”

Takeuchi noted that India is becoming an important market for Suzuki. “Our long-term goal is to produce and sell a total of four million units annually, including exports,” he added.

The new Swift is priced in between ₹6.49 lakhs and ₹9.64 lakh (ex-showroom Delhi). Takeuchi said the automaker has invested around ₹1,450 crore towards the development of a premium hatchback. This includes investing in tools and colors for the vehicle as well as new and more environmentally friendly Z-series engines, he added. The model will be manufactured at Suzuki Motor Gujarat, from where it will serve customers in India as well as overseas markets, Takeuchi said.

The new Swift, with a 1.2-litre petrol engine and six airbags as standard fitment, returns a fuel efficiency of up to 25.75 kmpl, a 14 per cent increase over the last generation model.

Date of first publication: 10 May 2024, 08:00 AM IST