Maintaining its small-car dominance, Maruti leads mid-size PV sales in FY23

Maruti Suzuki is known for its dominance in making pocket-friendly small cars in the country. However, Maruti is now making strides into the premium segment of the car market. The company has grabbed more than 25 per cent of the market for mid-size passenger vehicles in the last financial year, The Economic Times (ET) reported. These vehicles are priced between Rs 10 and 15 lakh.

Maruti launched several vehicles in this segment last year. It now has popular offerings like the Grand Vitara, Brezza, and XL6 in its product lineup catering to this market segment. The company has expanded its share in the space to 26.2 per cent from a mere 7.3 per cent in FY22, the report said.

Other dominant players in the market, Hyundai and Kia had a market share of 19 per cent and 18 per cent, respectively, during FY23. Industry estimates show that Indian car manufacturers Mahindra & Mahindra and Tata had 15 per cent and 12.5 per cent share of market for the mid-size passenger vehicles, the ET report added.

Industry experts believe that there are a number of factors that appear to have benefitted Maruti Suzuki. A separate distribution strategy for its premium cars leveraging NEXA showrooms, coupled with an increase in the average selling price of its products in the Indian market have bolstered Maruti's value chain. The company has done this while maintaining its hold on the small-car segment, the report said.

Talking about its the company's dominance, Senior Executive Director (Marketing and Sales) at Maruti Suzuki, Shashank Srivastava told ET, "We are the market leader in the Rs 10-15 lakh segment and growing. We are confident we must try to participate more in the premium market going ahead."