Key Highlights:
- New Entry-Level Car: Suzuki plans to introduce a new small car.
- Powertrain Options: CNG, mild-hybrid, and flex-fuel options.
- Target Market: First-time buyers and budget-conscious consumers.
- Market Strategy: Aims to regain 50% market share in India.
- Launch Timeline: Expected before FY2031.
Suzuki Motor Corporation is gearing up to launch a new small car in India, aiming to regain its market share in the competitive Indian automotive sector. The Japanese carmaker plans to introduce a unique entry-level car with multiple powertrain options, including CNG, mild-hybrid, and flex-fuel. This move is part of Suzuki’s Mid-term Management Plan, which aims to regain a 50% market share in India by the end of this decade.
Why this move from Suzuki?
The Indian passenger vehicle market has been experiencing slow growth due to a high base effect and sustained weakness in the small car segment. The decline in small car sales has significantly impacted Maruti Suzuki’s market share, which has dropped to around 41%. Despite the growing demand for SUVs, the small and affordable car segment continues to face challenges.
What to expect?
The new small car will be offered with a factory-fit CNG kit, mild-hybrid, and flex-fuel powertrain options. These options aim to provide consumers with a range of choices that balance performance, fuel efficiency, and affordability. The introduction of this new model is expected to boost Maruti Suzuki’s market share and strengthen its position in the Indian automotive market.
Target customers for Suzuki India
The new small car is designed to cater to first-time buyers and budget-conscious consumers, particularly those earning between INR 5-13 lakh annually. Suzuki’s strategy focuses on rapidly developing and introducing entry-segment products that meet the preferences of entry-model customers. This new model is distinct from the low-cost EV that Maruti Suzuki plans to bring to India.
Suzuki’s president, Toshihiro Suzuki, emphasized the importance of the small car segment, stating that there are still 1 billion people who need a good four-wheel car in this category. The new small car is expected to attract more first-time buyers from the two-wheeler market, helping to revive the small car segment and drive sustainable growth in the passenger vehicle industry.
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