The budget passenger car segment in the Indian market is currently shrinking, however, Maruti Suzuki one of the largest car manufacturers in India plans to remain in-line with the budget conscious customer, suggests a report. While the Indo-Japanese automaker does cater to the higher segment it will also meet the needs of the large number of customers that are looking for inexpensive vehicle, said the Chairman of the company RC Bhargava, at the shareholders annual report.
Media report further suggests that the entry-level passenger car market is likely to be down by 1% when compared to 2015. However, Maruti Suzuki could recover in this segment in the next year. The decline in the budget car market could be due to the disruptions caused during the COVID-19 pandemic. During this time hatchbacks have lost their market share and SUVs have seen a growth of around 50% in the industry. Also, due to the increase in cost of vehicles which overtook the speed of income growth has made many small cars to go out of the budget for customers looking for entry-level cars.
Also, reports reveal that the rise in the margin of SUVs has led many automotive manufacturers to concentrate on the higher segment, even those who existed in the sub-INR 5 lakh space. But Maruti Suzuki plans to manufacture low-cost cars, so the large majority of citizens who aspire to own a car as a safe means of transport can afford them.
Apart from manufacturing low-budget cars in India, the brand is also concentrating efforts to improve the SUVs that it currently has in its portfolio and regain its market share which might have been lost to other players. Also, the brand is gearing up to launch its all-electric SUV the eVX in the Indian market which is currently out on road test.
Also Read: Maruti Suzuki eVX continues extensive road testing in India