How Maruti Suzuki's SUV strategies propelled the brand right back to the top of the pile

economictimes.indiatimes.com:

In fact, sport utility vehicle (SUV) sales were growing exponentially, seemingly attracting buyers of the humble small car — the mainstay of the Indian market since the launch of the Maruti 800 in 1983.Changing preferences Naturally, the mood was different at the headquarters of India’s largest carmaker Maruti Suzuki, which dominates the market on the back of affordable and easy-to-maintain small cars. “A large chunk of Indian consumers started shifting from functionality — which is about things like fuel efficiency — to aspiration, which is about design, performance and image,” said Shashank Srivastava, senior executive officer, marketing and sales, Maruti Suzuki.This didn’t bode well for the brand, whose SUV portfolio was negligible at this point.

This change in Indians’ preference towards SUVs was so rapid that the market leader was caught off guard. “We underestimated the pace at which the SUV [segment] might grow.

Remember, the SUV market in 2015-16 was 16% of the total market, today it is over 45%,” Srivastava told Brand Equity. That year, the company lost an achievement it took great pride in — accounting for more than 50% of the Indian market by sales volume.

“We have been market leaders for 40 years, but the real kick is in getting to 50%,” Srivastava said. But with the Indian customer’s newfound demand for SUVs, this statistic began slipping from the brand’s grip.Number crunchingThe company set in motion a plan to regain a 50% market share, this time with a little help from the SUV segment.

So far, the brand led the small car category, enjoying 90% of the market share. Overall, the company accounted for two-thirds of the Indian car market; it was the SUV segment, in which it had just 7.1% market share even