Maruti Suzuki may revamp small car portfolio

livemint.com:

NEW DELHI : Maruti Suzuki may consolidate its entry-level small car lineup in the next three to four years, as India’s largest carmaker reworks strategy for what was once its bread-and-butter business. According to two people aware of the plans, the company may also cap investments in the mid-size sedan segment, where it sells the Ciaz. The company that built its business on small cars has made a big splash in the SUV segment in recent years, launching models such as Grand Vitara, the new Brezza and Fronx.

Meanwhile, sales of small cars such as Alto, Celerio and S-Presso have declined. Queries sent to Maruti Suzuki remained unanswered till press time. Maruti will strengthen its presence in segments such as SUVs, EVs (electric vehicles) and hybrids as its doubles annual capacity to 4 million units by the end of the decade, the people cited above said on the condition of anonymity.

In 2023, Maruti Suzuki’s parent Suzuki Motor Corp. said it would bring in 10 new models for India between FY25 and FY31. Four of these will be battery EVs, a segment in which Maruti has no car at present.

At the same time, the people cited above said that Maruti Suzuki’s internal studies project hatchback volumes for the industry to stabilize close to 1.5 million units and account for a quarter of all passenger vehicle sales in 2030. This would happen as affordability of the segment grows with rising incomes, and the impact of regulatory cost increases remains relatively limited. This also means that its portfolio of hatchbacks will likely require a different set of models to appeal to new buyers.