Maruti Suzuki Unveils Ambitious SUV-Centric Strategy

By siliconindia  |  Tuesday, 05 March 2024, 09:49:01 AM IST

Maruti Suzuki Unveils Ambitious SUV-Centric Strategy
Maruti Suzuki India is embarking on an ambitious SUV-centric strategy, with plans to launch at least six new models within the next three years, starting from the fiscal year 2025. This move underscores the Japanese automaker's commitment to aligning with evolving consumer preferences favoring sports utility vehicles (SUVs). The upcoming launches are set to significantly expand Maruti Suzuki's model lineup to approximately 30 vehicles.
The initiative is a pivotal step for Suzuki Motor's Indian subsidiary as it aims to double its annual production to 4 million vehicles by the end of the decade. The company anticipates selling between 540,000 and 560,000 SUVs in the fiscal year 2026, a notable increase from the estimated 440,000 units in the current fiscal year.
Maruti Suzuki's SUV strategy spans various segments, including micro SUVs, compact SUVs, compact electric SUVs, and two new four-meter SUV models. The latter will be positioned against Mahindra & Mahindra's popular XUV700 model. The company aims to cover all facets of the SUV market to cater to diverse consumer preferences.
In addition to conventional SUVs, Maruti Suzuki is making a significant foray into electric vehicles (EVs). The company plans to introduce four EVs, starting with its debut electric SUV scheduled for launch in October. Priced between Rs 20 and Rs 25 lakh, this premium electric SUV will be followed by a seven-seater electric SUV in March 2025, a small EV in May 2026, and an electric MPV derivative in October 2026.
Beyond EVs, Maruti Suzuki is also developing a micro-SUV, a small SUV, and a three-row MPV, slated for release in fiscal years 2026 and 2027. The company is not only focusing on new SUV models but is also preparing to launch updated versions of its existing lineup, including the Swift/Dzire, Fronx facelift, and new generation Baleno in 2024, 2025, and 2026, respectively.
Notably, Maruti Suzuki aims to integrate Suzuki's affordable hybrid technology into most models priced up to Rs 12 lakh. This hybrid approach aligns with the growing trend of electrification in the automotive industry. Despite the rise in SUV market share in India, Maruti Suzuki has successfully leveraged this trend to expand its average realization per unit, supporting margins even amidst increased discounts.
The company's operating margin before depreciation and amortization (EBITDA margin) witnessed a 198 basis points expansion to 11.7%, highlighting the positive impact of the SUV-centric strategy on its financial performance. As the Indian automotive landscape evolves, Maruti Suzuki's multifaceted approach reflects its determination to stay at the forefront of market trends and consumer demands. 

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