Maruti Suzuki bets on premium hatchbacks as demand outpaces industry

Maruti Suzuki's premium hatchback sales grew 28 per cent between April and August, compared with 17 per cent growth for the industry

Maruti Suzuki India is betting on the continued relevance of premium hatchbacks even as sport utility vehicles (SUVs) strengthen their dominance in the passenger vehicle market. This comes as the premium hatchbacks segment has grown faster than the overall industry in the first five months of the current financial year.

 

The premium hatchback industry is currently estimated at around 50,000 units a month, with Maruti Suzuki commanding about 70 per cent of the segment, Partho Banerjee, senior executive officer, marketing and sales, Maruti Suzuki India, told Business Standard.

 

Maruti’s premium hatchback sales grew 28 per cent between April and August, compared with 17 per cent growth for the industry, Banerjee said. The company is looking to further strengthen its position with the refreshed Baleno, which will come with several new features, including advanced driver assistance systems (ADAS).

 

The company expects the overall Indian passenger vehicle market to reach 6.1 million-6.3 million units by 2030. SUVs are estimated to account for 62-63 per cent of the market by then, leaving roughly 37-38 per cent for hatchbacks and multi-purpose vehicles (MPVs).

 

“Our take is this industry will be around 6.3 million,” Banerjee said, adding that Maruti sees significant headroom for the non-SUV segments. The company estimates the relevant market could reach around 2.5 million units by 2030, while its own business in this space could potentially double from around 600,000 units currently to 1.2 million units.

 

Maruti currently sells around 16,000-16,500 Baleno units a month, while its Fronx crossover sells around 17,000-18,000 units. Both models are manufactured on the same production line, with the company calibrating output based on waiting periods for the two models.

 

It launched a Baleno refresh this weekend starting at ₹6.1 lakh.

 

The refreshed Baleno will also feature ADAS with human detection, which Banerjee described as a first in the premium hatchback segment. The company is positioning the new features around what it calls the “cosmopolitan” customer seeking products that reflect their lifestyle and personality.

 

First-time buyers now account for about 46 per cent of Baleno customers, with Maruti also seeing growing interest from entrepreneurs and startup owners.

 

Maruti Suzuki has opened bookings for the new Baleno at ₹11,000. 

Shifting gears 

• Maruti sees non-SUV market at 2.5 million units by 2030
• It aims to double non-SUV business to 1.2 mn units
• Premium hatchback sales grow 28% as opposed to industry’s 17%
• Maruti bets on hatchbacks despite SUVs reaching 62-63% by 2030
• New Baleno bookings cross 11,000
• Baleno, Fronx together sell over 33,000 units a month