India’s top car manufacturer, Maruti Suzuki, is gearing up to dominate the SUV market with the imminent launch of two new models.
The move comes in response to the escalating demand for SUVs, a trend that has garnered significant traction among Indian consumers. Maruti Suzuki is currently in the development phase of an entry-level SUV, codenamed Y43, set to compete with the likes of Tata Punch and Hyundai Exter.
Additionally, the automaker is eyeing a 2025 release for a three-row SUV, codenamed Y17, based on the Grand Vitara platform. This larger SUV is expected to feature a robust hybrid powertrain and will be manufactured at the upcoming Kharkhoda plant.
Hisashi Takeuchi, the Managing Director and CEO of Maruti Suzuki India emphasised the necessity of expanding their SUV lineup, considering the evolving automotive market landscape. Takeuchi told Auto Car Professional, “The SUV trend is becoming bigger. At present, the main SUV categories are 4 metres and 4.3 metres, but they will expand further [into sub-segments] – a little bit at the lower end and also at the upper end. There are gaps, we can offer something at the bottom and something at the top, and we will try to fill those gaps.”
Currently, Maruti Suzuki has only four SUV models, whereas the market boasts 55 different options.
According to Auto Car, the three-row SUV is slated to be positioned in the Rs 15 lakh-25 lakh price segment, catering to a broad consumer base. The entry-level SUV, planned for launch in 2026-27, is poised to further bolster Maruti Suzuki’s presence in the highly competitive SUV market.
Maruti Suzuki’s decision aligns with the substantial growth observed in the sub-four-metre SUV segment, which surpassed the one-million-unit mark in 2023, according to Motor Beam.
The overall utility vehicle market has exceeded 2 million units, with SUVs accounting for 48 percent of passenger vehicle sales in 2023. The SUV market share is expected to surpass 50 percent in 2024.
The company’s goal of achieving a 50 percent market share by 2025 includes capturing 33 percent of the SUV market. Maruti Suzuki has experienced recent success, doubling its SUV market share to over 20 percent in the current fiscal year, driven by strong demand for models like the Fronx, Jimny and Grand Vitara.
Both upcoming SUVs are projected to contribute significantly to Maruti Suzuki’s sales volume, with an estimated additional 2,50,000 units per annum. The success of these new offerings will be pivotal for Maruti Suzuki as it endeavours to reach its target market share in the competitive passenger vehicle market.
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