More than budget carmaker: Maruti leads Rs 10-20 lakh segment at 23% share

Known for its budget-oriented cars, Maruti Suzuki is now taking hold of the more expensive segments as the country's largest car manufacturer expands its footprint in the Rs 10-20 lakh segment, with a market share of 23 per cent, The Times of India (ToI) has reported.

In the process of acquiring customers looking for premium vehicles, Maruti has left behind rivals such as Hyundai, Tata Motors, and Mahindra & Mahindra (M&M). With the introduction of Jimny, Fronx, and Grand Vitara, Maruti Suzuki has taken an aggressive approach to the market. 

Notably, the company has launched more expensive vehicles in recent times, with Invicto (Maruti's most expensive offering) being the latest addition to its product portfolio that retails in the 24-28 lakh price bracket.

Maruti Suzuki has been pushing for sales in the premium segment via its Nexa outlets as it looks to secure improved profitability, better margins and high-income customers, the ToI report said.

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Director of Sales and Marketing at Maruti Suzuki, Shashank Srivastava, was quoted in the report as saying that sales have been improving at a fast pace via the company's Nexa outlets which offer more premium products.

Maruti has divided its sales into two categories. First through its Arena outlets and second through Nexa outlets. While Arena outlets sell vehicles like Maruti Suzuki Swift, Eeco, Swift Dzire, Celerio etc. The Nexa outlets offer products like Jimny, Baleno, Fronx, Ciaz, Invicto, and Ignis.

With a 23 per cent market share in the Rs 10-20 lakh category, Maruti Suzuki leads the car market. Grand Vitara, Brezza, XL6, and Jimny have been doing impressive numbers for the company, Srivastava told the newspaper.

Also Read: With 'Invicto', Maruti set to drive into Rs 20+ lakh segment for first time

Until 2018-19, the share of Rs 10-20 lakh category vehicles was only 2.8 per cent for Maruti Suzuki. However, as the company has increased its focus on the premium segment, 16.8 per cent of Maruti Suzuki sales are from cars that cost between Rs 10-20 lakh, Srivastava told ToI.