Maruti Suzuki India, which leads the passenger vehicle market with a 42 percent share, has set its sights on also being the leader in the SUV market. The company, which currently has an 18.25 percent share of the utility vehicle market, targets to double its SUV sales in in FY2024.
- Maruti Fronx launch by April 2023
- Jimny price announcement by late May 2023
- Grand Vitara waiting periods increasing rapidly
Our sister publication Autocar Professional learns that with just the new Brezza and the Grand Vitara, Maruti Suzuki is set to close FY2023 with (UV) sales of around 2,00,000 to 2,25,000 units. This is set to more than double with the introduction of new models like the Fronx, five-door Jimny and full year of production of its Grand Vitara midsize SUV that was launched in September 2022. This would mean the company’s UV sales, which includes the popular Ertiga and the XL6 MPVs, will likely surpass the half-a-million UV sales milestone in the domestic market in FY2024.
Shashank Srivastava, senior executive director, Sales and Marketing at Maruti Suzuki India, told Autocar Professional, “We have the Brezza as the entry SUV, Grand Vitara the midsize SUV and now with two more SUVs (the Jimny and Fronx), we should be No.1 in SUVs in the next financial year. Our booking momentum is strong, led by a new range of SUVs. Our total pending booking at present is around 4,05,000 units helped by fresh bookings of the new Fronx and Jimny SUVs, and pending bookings of Brezza and Grand Vitara, which add up to 1,45,000 units.”
As per the company’s production plan, Maruti Suzuki may end up with a (UV) market share of around 23-24 percent in FY2024, say sources. Srivastava does not give any guidance of volumes but says that “the eventual goal is to regain 50 percent market share in the overall PV market. Looking at the growth trends across segments, we should ideally have a 33 percent market share to inch back to half of the market. It will be tough to attain it next year but in the following year, it may be possible.”
Making the most of a booming segment
Since the past three-odd years, the booming UV market has been the driver of growth in the overall PV market and has already crossed 1.6 million units in the first 10 months of the ongoing fiscal. Given the surging demand, SUVs are likely to account for almost 45 percent of the overall passenger vehicle market, which is set to cross a new milestone of four million units in the next financial year.
Inventory levels at dealerships are likely to cross 2,00,000 units by the end of February 2023 – this is the highest stock at outlets for the first time in almost two years. Factory supplies are improving, stocks at dealerships are nearing normalcy and the demand momentum is also sustaining. According to Srivastava, “One was expecting the booking momentum to slow down after the recent price increase, but the traction is still very strong and it will be interesting to see how the demand momentum continues after February.”
Do you think the upcoming Fronx and Jimny SUVs will help Maruti Suzuki be a leader in the SUV segment? Let us know in the comments below.
Also see:
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