The company sells CNG trims across various models like WagonR, Brezza, Dzire, and Ertiga, among others in the domestic market. Bharti said the company's capacity expansion by around 1 lakh units per annum at its Manesar plant, Haryana largely addresses the Ertiga supply issues. Ertiga CNG demand is huge in the market leading to supply issues, he noted.
With the new 4th-gen Swift, Maruti Suzuki is betting big on the revival of the small cars. The maker of Fronx and Jimny believes that as car ownership rises, the hatchback segment will serve as an entry point for many customers. Within this, it expects the premium hatchback category to grow up to 10 lakh by 2030. While the new Swift comes with a new engine and new features, it will be interesting to see if it manages to bring back the excitement or gets lost amid the rush of SUV-style models in the market.
India’s largest car manufacturer, Maruti Suzuki India, has been feeling the pressure in the hatchback segment due to the rising popularity of SUVs. The carmaker has invested INR 1450 crore to update its best-selling hatchback, the Swift, with a new engine and design tweaks, in hopes of revitalising the segment. In this exclusive interview, Hisashi Takeuchi, MD & CEO of Maruti Suzuki India, provides insights into the factors that will ignite this revival and explains why it is crucial to maintain a presence in the hatchback segment.
Rural FMCG demand outpaced urban markets in Jan-Mar 2024. Car companies reported higher rural sales. NielsenIQ noted 7.6% rural growth. Factors include robust rabi crop and government measures. Maruti Suzuki saw record rural sales.
India's auto industry attracts global players like Honda and Suzuki for exports, with a focus on quality and cost efficiency. The country's emergence as a key manufacturing hub reflects its appeal to major auto manufacturers.
The small car market which garnered about 47% share of the total passenger vehicle (PV) sales in the industry during FY18 has dropped to about 28% in FY24. This comes on the back of the growing demand for SUV-style vehicles which has gone up tremendously during the past 3-4 years. However, Maruti Suzuki expects that by 2026-end or 2027, the market will again see a growth in the hatchback segment. The carmaker is prepping up to launch the new-gen model of its popular Swift premium hatchback on May 9.
The new swift builds on its sporty design which aims to enhance its dynamism and fun-to-drive quotient, the company said.
Maruti Suzuki India is aiming to sell about 2 million vehicles in the current fiscal, an 8.1% increase, outpacing the domestic industry. The company is betting on the launch of new models to drive growth, targeting a 10% rise in production. Maruti also plans to step up exports significantly and invest INR 1.25 lakh crore by 2030 to double output. The company's aggressive strategy aims to regain market share lost to rivals in recent years.
The Indian automobile industry is experiencing a surge in hiring for C-suite executives from diverse consumer-facing sectors to address a talent shortage at the top level amid a post-pandemic sales rebound. Over the past 12-18 months, senior executives from FMCG, consumer durables, and retail backgrounds have transitioned to carmakers like Maruti Suzuki, Bajaj Auto, and TVS Motor Company, traditionally known for hiring engineers and technology experts.
Maruti Suzuki's RC Bhargava expects small car market revival in two years post two-wheeler recovery, with EV production planned for European exports. Bhargava further says: "Maruti has avoided trying to give any kind of guidance on margins or profitability or any such thing. All I can say is that I am optimistic. The conditions in India are going to be favourable"
Maruti Suzuki's Chairman RC Bhargava shared that the costs of today's technology which goes into the Toyota hybrids is still quite high and Maruti's parent company Suzuki Motor Corporation is working on developing affordable hybrid technology for India. Talking about FY25, Bhargava says the car industry can look forward to a year which is "pretty good in all aspects". Maruti will start the production of its first EV in the current financial year.
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