India’s largest carmaker has been able to pip rivals Hyundai, Tata Motors and Mahindra & Mahindra (M&M) in the Rs 10 lakh plus segment by launching its line of premium vehicles.
Maruti Suzuki’s premium models such as 4×4 Jimny off-roader and Invicto MPV, which is considered to be a twin of Toyota Innova, have been pushing sales in the segment as the company vies for better product margins, improved profitability, and high-income customers.
“With a share of 23 per cent in the Rs 10-20 lakh category at the end of the first quarter (Q1) of FY24, Maruti leads the segment as we sell the maximum with models such as the Grand Vitara and Brezza SUVs, XL6 MPV, and the just-launched Jimny,” said TOI quoting Shashank Srivastava, director (sales & marketing) at Maruti Suzuki.
The automaker’s sales of premium vehicles increased dramatically in the past four to five years.
“While it was a mere 2.8% in 2018-19, the share of Rs 10-20 lakh vehicles grew to 16.3% at the end of FY23, and now stands at 19.6% in Q1 this fiscal,” Srivastava said.Before entering this segment, Maruti has been a leader in the Indian market for its compact and budget cars. But as Indian car buyers shift gears towards SUVs versus hatchbacks and sedans, carmakers had to reinvent the wheel.The country’s largest carmaker drove in in multiple models in the up to Rs 20 lakh segment, including Brezza, Grand Vitara, Fronx to corner the top slot in the country’s fast-growing sports utility vehicle market. It has also been using
vehicles jointly developed (or sourced) with Toyota for this push.
Maruti Suzuki Grand Vitara, which comes equipped with strong hybrid technology sourced from Toyota, competes with rival Hyundai’s Creta and Kia’s Seltos.
Srivastava said that Maruti expects the share of premiums to also go up as the company starts to drive in electrics, beginning 2024-25.