Maruti Suzuki sub-brands drive dominance in Indian PV market. Here’s how

Maruti Suzuki has maintained its dominance in the Indian passenger vehicle market since its inception. In the last financial year (FY 2023-24), the company sold 17,59,881 units with a growth rate of 21 per cent year-on-year, surpassing its previous best of FY 2018-19 with sales of 17,53,000 units. For comparison, the second best-selling PV brand, Hyundai Motor India, sold 7.77 lakh units during the same period.

Interestingly, Maruti Suzuki's total retail figures are significantly higher than its competitors, even when excluding sales from its premium retail channel, NEXA. The company reported retail sales of 5,61,000 units under the NEXA brand in FY24, marking a 52 per cent year-on-year growth compared to FY23's sales of 3,69,000 units.

Maruti Suzuki claims the top spot as the most selling PV company, with total sales of 11,98,881 units, while NEXA holds fourth place. The company's overall growth is attributed to its focused SUV expansion strategy, with most SUVs launched last year being retailed through the NEXA channel. Out of the seven SUV/MPV models currently sold by Maruti, five are sold through NEXA, including the Grand Vitara, Fronx, Invicto, XL6, and Jimny.

NEXA aims to attract young, aspirational customers by offering a premium experience through its 490 outlets across the country. The increase in NEXA sales during FY24 was primarily fueled by the popularity of Maruti Suzuki's leading NEXA model, the Baleno, which was complemented by the introduction of three new models during the same fiscal year.

Maruti Suzuki expanded the NEXA portfolio to a total of seven models, including the Ignis, Baleno, Ciaz, Fronx, Grand Vitara, Jimny, and Invicto. The Baleno premium hatchback emerged as the best-selling model for Maruti Suzuki from the NEXA channel, with sales exceeding 195,000 units in FY24.

The company claims that NEXA has asserted itself as the fastest-growing brand for any automaker in India and is integral to Maruti Suzuki's retail strategy. Additionally, Maruti Suzuki disclosed that out of its current order book of 198,000 units, the Grand Vitara SUV constitutes 8,000 units with an average waiting period of 3-4 weeks.

Maruti Suzuki sold a total of 17,59,881 cars in FY 2023-24, which is 9.5 per cent higher than what the company achieved in FY 2022-23.

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Maruti Suzuki sold a total of 17,59,881 cars in FY 2023-24, which is 9.5 per cent higher than what the company achieved in FY 2022-23.

SUVs driving growth for used car business

While Maruti Suzuki has experienced remarkable success in new car sales, the company has also seen significant growth in its used car business. True Value, Maruti's pre-owned car brand, achieved sales of 4,81,000 units in FY 2023-24, marking a 12.3 per cent year-on-year increase over the 4.28 lakh units sold in FY 2022-23.

Shashank Srivastava, Executive Committee Member at Maruti Suzuki India, candidly noted that True Value has now become the fifth best-selling PV brand in the Indian market. The company attributed this success to the significant increase in demand for SUVs in recent years, leading to a shortage of SUVs in the used car market.

The company explains that typically, new vehicle owners retain their vehicles for an average of 7.3 years before selling them. This lag in selling means that the current availability of used cars reflects the vehicle segment's composition from a few years ago.

In the previous year, Maruti Suzuki's pre-owned car business surpassed the milestone of 50 lakh units in sales since its inception. Maruti Suzuki launched True Value in 2001, and it is currently operational in over 281 cities with more than 560 outlets across India.