Maruti repositions Brezza as first-time buyers reshape compact SUV market

The refreshed Brezza will target first-time, replacement and additional-car buyers as Maruti responds to changing preferences and intensifying competition in compact SUVs

Maruti Suzuki is repositioning the Brezza to target first-time buyers and address changing consumer preferences, as competition intensifies in India's fast-growing compact SUV market. Ahead of the refreshed model's launch on Friday, the country's largest carmaker said it has been designed to appeal to a broader cohort of buyers rather than a single customer profile.

 

The shift comes as the profile of Brezza buyers has broadened significantly over the past 18 months. First-time car buyers have increased by 8 percentage points, while first-time buyers, replacement buyers, and additional car buyers each now account for roughly one-third of the model's customer base. With no single buyer group dominating the customer mix, Maruti said the refreshed Brezza has been developed to cater to all three segments.

 

"We are not just making a product now. We are trying to see what this young India wants. I don't go by demographics. I go by psychographics. It is the mindset that makes the difference," Partho Banerjee, senior executive officer, marketing & sales, Maruti Suzuki India, told Business Standard.

 

Banerjee said the refreshed Brezza has been developed to cater to different customer "mindsets" rather than a single buyer profile.

 

The company's internal research suggests the entry-SUV buyer has become markedly more aspirational over the past decade. According to Maruti, the share of entry-SUV buyers has grown 37 per cent since 2017 — more than twice the pace of industry growth. At the same time, purchase drivers have evolved, with the importance of performance rising 35 per cent, new technology 44 per cent, and boot space doubling between 2017 and 2025, according to company data.

 

The strategy comes as the compact SUV segment has emerged as India's largest passenger-vehicle category, with its contribution to industry sales rising from about 5 per cent in financial year 2015-16 (FY16) to over 30 per cent in FY26, company data shows.

 

While the Brezza helped popularise the segment after its launch in 2016, its own share has declined from around 43 per cent in FY17 to about 13 per cent in FY26, as rivals — including Tata Nexon, Hyundai Venue, Kia Sonet, Mahindra XUV 3XO and, more recently, Skoda Kylaq — intensified competition.

 

Even so, the Brezza remains the country's highest-selling compact SUV, with cumulative sales of 14.2 lakh units, ahead of Tata Nexon (10.4 lakh) and Hyundai Venue (7.8 lakh), company data shows, citing JATO Dynamics. Maruti has already opened bookings for the refreshed model.

 

Banerjee, however, rejected suggestions that the refresh was driven by competitive pressure, arguing that Brezza's recent sales were constrained by production capacity rather than demand. "The Brezza has been consistently doing very well... Last year our numbers were close to two lakh. It was purely the production constraint," he said.

 

The company also believes the compact SUV market is becoming more fragmented in terms of customer expectations. Banerjee said buyers are no longer making purchase decisions on a single parameter such as price or fuel economy, with preferences diverging between performance-oriented customers, those seeking lower running costs, and others opting for cleaner fuels. That shift, he said, is reflected in the product planning for the refreshed Brezza.

 

He added that demand for CNG vehicles continues to strengthen, particularly among younger buyers. Preference for CNG among customers below 35 years has risen by 7 percentage points over the past two years, while diesel users are increasingly migrating to CNG. 

Revving up

• Maruti repositioning addressing changing compact SUV market segment mindsets
• First-time car buyers have increased by 8 percentage points
• Competition from Nexon, Venue, Sonet, XUV 3XO, Kylaq has reduced Brezza’s share from 43% (FY17) to 13% (FY26)
• Brezza still highest-selling compact SUV 1.42 million units cumulatively