Maruti Suzuki readies Exter, Punch rival

Despite having a limited SUV portfolio, Maruti Suzuki has managed to grab leadership in the segment in the ongoing financial year, and it's now looking to aggressively fill key gaps in its portfolio. The company, which currently has over 20 percent share in the utility vehicle market, plans to introduce a small SUV as an alternative to entry hatchback buyers and a large, three-row SUV in the next two to three years to further build its presence and market share in the fast-growing segment.

1. Maruti Y43 SUV will sit below the Brezza
2. Both models will launch between 2025 and 2027
3. Maruti eVX SUV coming by late 2024

According to industry sources, Maruti Suzuki is scheduled to launch a three-row SUV (codenamed Y17), based on the Grand Vitara, with a strong hybrid powertrain from its upcoming Kharkhoda plant in 2025 and positioned in the Rs 15 lakh-25 lakh price segment. Meanwhile, the entry-level SUV (codenamed Y43) is planned to hit the roads in 2026-'27.

Hisashi Takeuchi, MD and CEO of Maruti Suzuki India, told our sister publication Autocar Professional recently that the company does not have enough SUVs and there are gaps to fill. In a market that has 55 SUV models on sale, Maruti has only four. “The SUV trend is becoming bigger. At present, the main SUV categories are 4 metres and 4.3 metres, but they will expand further [into sub-segments] – a little bit at the lower end and also at the upper end. There are gaps, we can offer something at the bottom and something at the top, we will try to fill those gaps,” he said. 

Maruti Suzuki has thus far relied on high-riding hatchbacks like the S-Presso and Ignis that have SUV-like looks, but with the new model, the strategy is to have a proper SUV to take on the likes of the high-selling Hyundai Exter and Tata Punch compact SUVs, say people in the know. The decision to come out with an entry-level SUV happens at a time when the sub-4m SUV market has crossed the million-unit mark in 2023, helping the overall utility vehicle market grow to over 2 million units. Maruti Suzuki, with four SUVs launched in the past two years, currently has a small presence in this over 50-strong model segment.

Takeuchi explained: “Sticking to our core value, we will offer more customers the joy of mobility. If a customer wants bigger SUVs, we will satisfy their needs. If they want a three-row vehicle, we will supply those cars to the Indian customers holding onto entry cars. I think in the small car segment, some SUVs will come in the future. Our SUV play will become much wider.”

Both planned SUVs are likely to bring in additional sales of 2,50,000 units per annum, if the production volume forecasted matches the market demand. As a result of strong demand for its new range of SUVs like the Fronx, Jimny and Grand Vitara, Maruti Suzuki has been able to double its SUV market share to over 20 percent in the fiscal year to date. The volumes from the additional SUVs will be critical for Maruti if it wants to go back to its stated target of 50 percent market share in the passenger vehicle market.

Shashank Srivastava, senior executive officer, sales and marketing at Maruti Suzuki, had in an earlier interview explained that for Maruti Suzuki to regain its 50 percent market share, the company will have to capture 33 percent of the SUV market. While both these SUVs will be launched between 2025 and 2027, Maruti Suzuki had put out a bold target of grabbing 50 percent market share in 2025. This is likely to be a tough task, given the intense competition from rivals planned in the next two years.

The SUV segment accounted for 48 percent of the overall passenger vehicle sales in calendar year 2023 with around 2 million units delivered. The SUV segment was the fastest-growing segment last year, growing by over 25 percent in a market where hatchbacks and sedans posted a decline. The share of SUVs in the overall passenger vehicle market is likely to surpass 50 percent in 2024, up from the 43 percent share it had in 2022. Additionally, Maruti will also debut its first born-EV SUV based on the eVX sometime in late 2024.