Maruti Suzuki to claw back 50% market share in Indian PV market. Here's how
In the dynamic landscape of the Indian automotive industry, Maruti Suzuki has long reigned supreme, commanding a formidable market share and setting benchmarks for its competitors. However, recent years have witnessed a shift in this narrative, with Maruti Suzuki experiencing a gradual erosion in its market dominance. From holding a commanding 51 per cent share in FY20, the automotive giant's market share has dipped to 42 per cent in FY24, marking a notable decline.
This downturn, however, is not indicative of Maruti Suzuki's waning influence but rather a strategic recalibration in response to evolving market trends and consumer preferences. Despite the decline in overall market share, Maruti Suzuki has seen a significant upswing in its performance, particularly in the utility vehicle (UV) segment. Bolstered by a robust lineup of SUVs like the Brezza and Ertiga, Maruti Suzuki witnessed a staggering 75.4 per cent growth in UV sales, propelling its overall sales figures to 17,59,881 units in FY 2023-24.
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As Maruti Suzuki charts its course towards regaining its erstwhile dominance, industry analysts at Jato Dynamics have outlined several strategic imperatives that could propel the automotive giant towards its ambitious goal of reclaiming a 50 per cent market share.
One key area of focus highlighted by Jato Dynamics is Maruti Suzuki's fuel mix strategy, which integrates petrol and hybrid vehicles across its model lineup. Leveraging this hybrid approach has not only enabled Maruti Suzuki to achieve a higher average selling price but has also facilitated market share gains, despite the absence of electric vehicles in its portfolio.
Expanding its portfolio of CNG variants emerges as a critical recommendation. With growing consumer preference for cost-effective and eco-friendly fuel options, Maruti Suzuki stands to capitalise on this trend by introducing more CNG variants across its product lineup, thereby widening its customer base and enhancing its competitive edge.
Recognising the growing demand for environmentally sustainable mobility solutions, Maruti Suzuki should continue investing in the development of hybrid vehicles. These vehicles not only offer superior fuel efficiency but also align with the evolving preferences of environmentally conscious consumers.
Moreover, the burgeoning SUV segment presents a significant growth opportunity for Maruti Suzuki. By diversifying its SUV portfolio to cater to different segments and price points, the automotive giant can bolster its market presence and inch closer to its goal of capturing 25 per cent of the SUV market.
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In addition to product diversification, Maruti Suzuki must prioritise enhancing the overall customer experience. This entails investing in innovative marketing campaigns, bolstering after-sales services, and fortifying its digital presence to engage with customers seamlessly across various touchpoints.
Chairman’s take on the future
While most of the pointers mentioned by Jato Dynamics are already a focal point for Maruti Suzuki, the company chairman, RC Bhargava had revealed plans for expanding production capacity to realise their ambitious market share goals. To support its ambitious growth objectives, Maruti Suzuki is actively ramping up its production capacity. Expansion efforts include augmenting production at existing facilities like the Manesar plant and commencing operations at the Kharkhoda plant by FY 25-26. Furthermore, the company aims to leverage additional capacity from the Gujarat plant by 2026, further bolstering its manufacturing capabilities.
However, as chairman Bhargava underscores, capacity expansion alone is not sufficient to ensure success. Maruti Suzuki must effectively utilise its enhanced production capacity to meet burgeoning market demands while maintaining stringent quality standards. Despite facing stiff competition and production constraints, Maruti Suzuki remains steadfast in its pursuit of market leadership, buoyed by its unwavering commitment to innovation, customer-centricity, and operational excellence.
