Small cars remain base, but SUVs can't be ignored: Maruti MD Takeuchi

Maruti Suzuki India Ltd (MSIL) on Wednesday launched its new mid-size SUV “Victoris”, marking its second entry in the fast-growing category as the company seeks to strengthen its market share, expand exports, and balance its long-standing focus on small cars with the surging demand for SUVs that “can’t be ignored”, according to MSIL’s Managing Director and Chief Executive Officer (MD&CEO) Hisashi Takeuchi.

 

SUVs that are 4-4.5 metres in length are considered mid-size.

 

Suzuki is transferring more export production from Japan to India as the role of the latter continues to increase in the company’s global strategy.

 

Victoris is planned to be shipped to around 100 markets worldwide, underlining India’s importance as a manufacturing hub. “Export is always under consideration. Suzuki Japan is shifting more and more of its export market from Japan to India. From India, we can export a robust, good and durable product at a very competitive price,” Takeuchi told reporters after the SUV launch.

 

 

Exports, which were once supplementary for Maruti Suzuki, are growing faster than domestic volumes. The company shipped over 330,000 units in 2024-25 (FY25), and overseas shipments are projected to more than double to 750,000 units by FY31.

 

Takeuchi emphasised that success in SUVs is crucial to regaining the company’s overall market share in passenger vehicles (PVs), which currently stands at about 40 per cent, compared with over 50 per cent earlier.

 

“With SUVs now accounting for 55 per cent of the overall market, the segment could not be ignored,” he noted. For Maruti Suzuki, SUVs contribute 28 per cent to overall sales, up nearly threefold from 8.9 per cent in FY21.

 

MSIL is already a leader in the sub-4-metre SUV category, with models such as Brezza and Fronx, and is consolidating its position in mid-size segment with Grand Vitara and now Victoris. The company is also studying the possibility of entering the premium SUV segment — above 4.5 metres in length.

 

At the same time, Takeuchi stressed the continuing importance of small cars, which remain the base of Maruti Suzuki’s business. “We believe small cars in India will continue, and we will keep introducing small cars in this market, this is like a base of our business. But 55 per cent of sales is now SUVs and we can’t ignore this market,” he said.

 

“The Indian automobile industry is changing as a new set of customers is entering the market. They are the young generation and represent the new India. So, we thought, why not create a product that raises the bar in the SUV segment,” the MSIL chief said.

 

The Victoris, built with an investment of around ₹1,240 crore, will be manufactured at the company’s Kharkhoda plant in Haryana.  The SUV will be sold from Maruti’s Arena network and will compete with Hyundai Creta, Kia Seltos, and Honda Elevate. It comes with multiple powertrain options, including strong hybrid and CNG, and is the company’s first car to feature Level-2 Advanced Driver Assistance System (ADAS) with functions like automatic emergency braking, blind-spot warning, and lane departure prevention.

 

Maruti Suzuki is also preparing to launch the e-Vitara later in FY26, further expanding its SUV portfolio. Takeuchi clarified that the Victoris, positioned for Arena customers, would not cannibalise the Grand Vitara, which is sold through Nexa showrooms.