At a time when most passenger vehicle brands are shifting focus towards SUVs, Maruti believes it's crucial to have a strong product line-up across all mass-market segments, including sedans, for a high market share.
“Although the SUV segment is growing, all other segments are equally important for us; Because, to retain our high market share, we have to have a presence in each segment. Especially in the sedan segment, which is traditionally very important,” MD and CEO Hisashi Takeuchi said on the sidelines of the new Dzire launch.
- Maruti has spent Rs 1,000 crore on developing the fourth-gen Dzire
- Sedans currently account for around 8 percent of the total PV volume
- Maruti aims to increase sedan market to 10 percent with the new Dzire
New Dzire to rejuvinate compact sedan segment
Hatchbacks or small cars and sedans have seen a significant decline in sales over the past decade, leading automakers to put their major focus on SUVs, with several even vacating the small car space altogether. The sedan segment has also been missing major product action for some time now. For Maruti, however, things are slightly different, as the brand continues to focus on popular models like the Dzire, with timely updates and model changes.
“The compact sedan is a very reliable and stable segment. We can count on stable numbers all the time,” Takeuchi said. The automaker spent Rs 1,000 crore on the design, development, and production of the new 4th-generation Dzire, which comes with the Swift’s 1.2-litre three-cylinder Z12E engine and a slew of new features, including added safety tech.
With the new Dzire, the automaker expects to re-energise the segment. “Taking a long perspective, by 2030, we feel the passenger vehicle market will be around 60 lakh units and sedans will still have a reasonable pie of close to 10 percent,” said senior executive officer for Marketing and Sales Partho Banerjee.
Sedans currently account for around 8 percent of the total passenger vehicle volume and compact sub-4 meter models contribute to approximately 70 percent of that segment. Maruti Suzuki is the market leader in the compact sedan space with a share of around 60 percent. Last year, it sold around 1.6 lakh units of the Dzire.
The Dzire generates a significant part of its sales from the fleet segment, where it is exclusively sold as the low-frills 'Tour S' variant for fleet operators. Around 65-70 percent of the Dzire sales come from the personal segment, while the rest account for the fleet segment.
“With the previous-generation Dzire, there was a challenge to meet the different requirements of personal and fleet customer segments. So, we used to keep a balance to serve both segments,” Banerjee said.
However, in a bid to prioritise the requirement of private buyers, Maruti is offering the fourth-generation Dzire only for personal mobility. For fleet users, the automaker will continue with the previous-generation Dzire, branded as Maruti Tour S. Apart from the Dzire, the Tata Tigor, Honda Amaze, and Hyundai Aura are other models in the compact sedan space.
With inputs from Yukta Mudgal
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