Maruti Suzuki India Set To Expand SUV Portfolio As Small Car Demand Weakens

Maruti Suzuki India Ltd. is set to expand its SUV portfolio with a second mid-sized model, according to The Economic Times. The nation's top carmaker is facing difficulties in countering the slowing demand for its small cars.

Japan's Suzuki Motor's Indian Unit

According to the Economic Times," the Indian unit of Japan’s Suzuki Motor Corp. plans to launch the vehicle on Sept. 3 and hopes it will double its sales in the segment. It will be the first new model to roll out of the company’s plant in Kharkhoda in the northern state of Haryana, from where it targets around 10,000 units a month when scaled fully."

Suzuki & Rivals

The Suzuki unit gave rivals- Mahindra & Mahindra Ltd., Hyundai Motor India Ltd. and Tata Motors Ltd.- a headstart as consumer preference shifted toward SUVs.That, together with shrinking small-car sales, has put Maruti’s goal of grabbing 50% of the domestic market, up from around 40% now, in doubt.

While the Grand Vitara has seen volumes plateau in recent months, the new SUV is positioned as a more mass-market version, the people said. That would see the new mid-sized SUV retail through Maruti Suzuki’s Arena outlets, while the Grand Vitara is sold through the Nexa outlets meant for more premium-positioned cars.

Why Is The Company Struggling?

The company “is struggling to regain lost market share due to continued weakness in its mainstay mini and compact segments, despite a recovery in output and strengthening of its SUV product portfolio,” Tatsuo Yoshida, a senior autos analyst at Bloomberg Intelligence, wrote in a March report.

Strengthening Of SUV Lineups

According to The Economic Times, "Accounting for 60% of Suzuki’s global sales, the Indian unit will play a critical role in the success of its parent’s fiscal 2026-31 medium-term plan, Yoshida said, adding that by further strengthening its lineup, particularly in SUVs, Maruti can capture expanding demand in rural areas to boost both sales volume and market share."