Maruti Suzuki looks to strengthen presence in SUV market

Shashank Srivastava: “We identify what we call the red spots (where other OEMs have presence), white spots (totally new space) and the blue spots (partially catered to by other OEMs)”.

The SUV market is on the rise, and it is expected to clock a healthy growth rate at least for the next 3-4 years. The segment, which contributes the largest share of around 32 percent to the domestic passenger vehicle market, could reach a level of around 40 percent by 2025-26, according to Shashank Srivastava, Executive Director – Marketing and Sales, Maruti Suzuki India. Reason enough for the OEM to plan some moves in the SUV space.

Maruti Suzuki leads the entry-level SUV market, which saw sales of 445,000 units in FY2021, with its Vitara Brezza. The model, which made a shift from diesel-only to become petrol-only last year, is benefitting from the consumer shift towards petrol, and also contributing to the fuel shift in its segment. The share of petrol in the compact SUV segment has jumped from 39 percent in FY2020, to 74 percent in FY2021. Maruti Suzuki retailed 94,635 Vitara Brezzas in FY2021. The OEM may make a move or two to bolster its leadership position in the compact SUV segment.

Reports suggest once of them could be the next-generation version of the Vitara Brezza. In addition, it is expected to enter the midsize SUV sub-segment for the first time. The compact SUV segment contributes around 16.5 percent of the SUV market sales, followed by nearly 15 percent of the market volume coming from midsize SUVs.

Srivastava would not comment on any new model rollout plan, but told Autocar Professional that the general thought process at the OEM is that “we keep examining the trends of consumer choices that keep changing for different segments, which is getting bigger which is getting smaller and so on. And we identify what we call the red spots (where other OEMs have presence), white spots (totally new space) and the blue spots (partially catered to by other OEMs)”.

The SUV segment’s rise has been quite phenomenal. However, there could also come a time when it may lose the sheen to another segment. For example, how sedans have lost out to SUVs. Sedans in India contributed to nearly a fourth of the passenger vehicle market in FY2016. In FY2021, it was around 11 percent. Even if there could be a change in consumer preference, the short to mid-term prospects seem to be good for SUVs. And Maruti Suzuki, which is yet to have a significant presence in the overall SUV space, would need a few more models. Including in the compact SUV space where it leads the pack. “Absolutely, so obviously there is a fatigue factor not just for segments but for specific models also,” says Srivastava.

Citing research findings, he shares that fatigue factor could set in a segment once it crosses the 250,000 mark in annual sales. The compact SUV segment is heading towards double that figure. New models may help counter any fatigue and also stimulate demand. And the mantra to get the customers is clear – “If you don’t bring products, then competitors surely will”. For Maruti Suzuki, tapping the SUV trend better will be crucial to also increase its average ticket size of vehicles it sells, and strengthen its overall performance in the passenger vehicle market.

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