{"id":33068,"date":"2025-01-17T13:32:15","date_gmt":"2025-01-17T13:32:15","guid":{"rendered":"https:\/\/peraltafinancing.com\/business\/marketing\/will-small-cars-survive-the-suv-boom-maruti-suzuki-thinks-so-et-brandequity\/"},"modified":"2025-01-17T13:32:15","modified_gmt":"2025-01-17T13:32:15","slug":"will-small-cars-survive-the-suv-boom-maruti-suzuki-thinks-so-et-brandequity","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=33068","title":{"rendered":"Will small cars survive the SUV boom? Maruti Suzuki thinks so, ET BrandEquity"},"content":{"rendered":"


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Maruti Suzuki<\/a>, India\u2019s largest carmaker, is steadfast in its belief that small, affordable cars will remain a cornerstone of the Indian auto market, despite the meteoric rise of SUVs. With over half of the market now dominated by SUVs, this segment has outpaced hatchbacks by nearly double. However, Toshihiro Suzuki<\/a>, Chairman of Suzuki Motor Corporation<\/a>, told ToI in an interview that small cars<\/a> will continue to serve as an essential stepping stone for the billion-plus Indians transitioning from two-wheelers to four-wheelers.<\/p>\n

\u201cSmall cars are not going anywhere,\u201d Suzuki said, flagging the affordability and accessibility they offer to first-time car buyers.<\/p>\n

As India secures its position as the world\u2019s third-largest auto market, competition has intensified. Maruti Suzuki<\/a> faces growing pressure from rivals like Tata Motors<\/a>, whose Punch SUV emerged as the best-selling car in 2024. Suzuki acknowledged the heightened competition, saying, \u201cMaruti<\/a> Suzuki would like to respond by putting greater efforts through products, services, and marketing. Maruti and Suzuki will hold hands tightly to sustain our top market share.\u201d<\/p>\n

Domestic passenger vehicle (PV) sales hit a record 4.27 million units in 2024, driven by strong demand for sport-utility vehicles (SUVs). According to data from the Society of Indian Automobile Manufacturers (Siam), sales of utility vehicles, including SUVs, vans, and multipurpose vehicles (MPVs), grew nearly 17% to 2.75 million units. In contrast, sales of passenger cars fell by 14% to 1.37 million units.<\/p>\n

Suzuki also hinted at a shift in leadership dynamics within Maruti Suzuki, signaling the possibility of an Indian executive taking over key roles within both the company\u2019s Indian operations and its global headquarters in Japan. \u201cIt is quite possible that an Indian can become MD and president of Maruti Suzuki. Also, it is quite possible that an Indian can become the president of Suzuki Japan,\u201d he noted.<\/p>\n

The automaker is gearing up to launch its first electric vehicle (EV), set to debut at the Delhi Bharat Mobility Show. While global EV sales have shown signs of slowing, Suzuki remains optimistic about India\u2019s potential. \u201cIn India, there is a potential and EV sales will grow. We studied early bird products and their EV functions. We are using an exclusive platform for developing EVs,\u201d he said.<\/p>\n

To address charging infrastructure challenges, Maruti Suzuki plans to provide facilities at its service stations. Suzuki emphasized a broader approach to reducing carbon emissions through diverse mobility solutions, signaling that electrics will be a key part of their strategy alongside hybrids.<\/p>\n

Suzuki sees India playing a pivotal role in the company\u2019s global EV ambitions. \u201cIndia will be the global production hub. First, we will export to Europe, then to Japan, and then to the world,\u201d he said. Beyond EVs, India will also serve as an export base for hybrid vehicles<\/a>, with Suzuki praising the increasing recognition of Indian manufacturing quality on the global stage.<\/p>\n

Suzuki highlighted compact vehicles as the ideal starting point for EV manufacturing, emphasizing the importance of mastering production techniques before venturing into smaller EVs. \u201cOnce we grasp it fully, we would then like to shift to small car EVs,\u201d he added, underscoring the company\u2019s methodical approach to electrification.<\/p>\n

While SUVs dominate the conversation, Maruti Suzuki is doubling down on its belief in small cars, a diversified mobility strategy, and India\u2019s role as a global hub for automotive innovation. With an eye on leadership transitions, the company also signals a potential future where Indian talent leads not just domestically but also on the global stage.<\/p>\n

(with ToI inputs)<\/em><\/p>\n

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