Maruti Suzuki, the leading passenger vehicle manufacturer in India in terms of volume and sales, faced genuine concerns regarding its small cars and sedans. In October, the company had to reduce the production of passenger cars by 16%, while simultaneously boosting the production of SUVs and MPVs by 33%. The shift in production reflected the ongoing struggle in the small car segment, plagued by declining consumer interest, as utility vehicles maintained their dominance in the market.
Maruti Suzuki reported in an official submission that the production of its passenger cars reached 89,174 units in October 2024, indicating a decline of 16% from the 106,190 units manufactured in the same month of the previous year. Specifically, the production of Maruti Suzuki’s smaller vehicles, including the Alto K10 and S-Presso, decreased to 12,787 units last month from 14,073 units in October 2023.
In comparison, the manufacturing of small-sized automobiles such as Baleno, Celerio, Dzire, Ignis, Swift, and WagonR, as well as those delivered to Toyota Kirloskar Motor, experienced a decrease to 75,007 units from 90,783 units from the previous year. On the other hand, the production of the mid-sized sedan Ciaz slightly increased to 1,380 units last month from 1,334 units in the corresponding period last year.
In contrast, the manufacturing of utility vehicles such as Brezza, Ertiga, Fronx, Jimny, and XL6 surged by 33.18 percent to reach 72,339 units in October 2024, up from 54,316 units reported in the same month of the previous year. This figure encompasses the rebranded models delivered to Toyota Kirloskar Motor as part of the worldwide Suzuki and Toyota collaboration.
The car manufacturer saw a slight increase in the production of passenger vehicles, with 173,662 units manufactured compared to 173,230 units in October 2023. In total, the automaker’s vehicle production, which includes passenger vehicles and light commercial vehicles, was up last month, reaching 177,312 units compared to 176,437 units in October 2023.
Among mass-market car buyers in India, there is a noticeable shift towards SUVs and MPVs, resulting in a decline in the popularity of smaller car models. This trend has affected various car brands in distinct ways, with Maruti Suzuki facing more concerns than reasons to celebrate.
Maruti Suzuki has long been known for its strong lineup of small cars such as Alto K10, WagonR, Baleno, and Swift, which have consistently outperformed competitors. However, the recent trend shows a decline in demand for small cars while SUVs are gaining popularity. In response, the company is focusing on expanding its SUV range by introducing models like Fronx, Jimny, Grand Vitara, and the Toyota Innova Crysta-based Invicto. Despite the success of some of these SUV models, the decreasing sales in the mini and compact car segments raise concerns, especially considering the overall slowdown in the Indian automotive market compared to the previous year.
