A revival in the rural market has played a key role in halting the decline in sales of entry-level small cars, which saw a 10 percent growth in retail sales in October, according to top officials of Maruti Suzuki India (MSI). The company, which recently launched the all-new version of its compact sedan Dzire, priced between Rs 6.79 lakh and Rs 10.14 lakh (ex-showroom Delhi), remains optimistic about increasing its share in the sedans category despite the rapid growth of SUVs. Maruti Suzuki asserts that it will continue to cater to all vehicle segments to maintain its high market share in the domestic market.
While the SUV segment has been growing at a fast pace, other segments, including compact sedans, remain crucial for MSI to maintain its market dominance. Hisashi Takeuchi, MSI MD and CEO, emphasized, "The compact sedan segment is very reliable... from a business point of view, it is very good. To retain a decent market share, we need to have a presence in each customer segment."
Currently, Maruti Suzuki holds over 40 percent market share in the overall domestic passenger vehicle segment, with more than 50 percent in the sedan segment. In the entry compact-sedan segment—which includes competitors like Honda Amaze and Hyundai Aura—MSI holds a commanding market share of over 61 percent for the April-September period of the fiscal year.
The sedan segment currently represents 8 percent of the overall passenger vehicle volumes, while sedans account for 10 percent of MSI's total sales volumes. Partho Banerjee, MSI Senior Executive Officer for Marketing and Sales, stated that the company's strategy is to serve all customer segments, with rural markets performing better than urban areas.
