Maruti Suzuki News: Maruti Suzuki plans its biggest product offensive to regain market share
“Amid all the uncertainties, let me assure you that on the product front, Maruti Suzuki will have an exciting 22-23 fiscal year,” Maruti Suzuki chief executive Hisashi Takeuchi said Thursday. “Aiming to bring the joy of mobility to customers, we will continue to offer new models and upgrades in different segments.”
The company will bank on a new range of SUVs – both under and over 4 meters in length – to recover its lost market share. It on Thursday launched the all-new XL6, a premium multi-purpose vehicle (MPV) priced between Rs 11.29-14.55 lakh (ex-showroom).
An SUV developed jointly with Toyota, named YFG, will take on segment leader Hyundai Creta while the all-new Jimny is expected to challenge Mahindra Thar. A planned Baleno-based crossover and mid-cycle Ertiga and WagonR facelifts and upgrades are also in the works.
Takeuchi said business realities are continually changing. “It cannot be precisely determined what challenges will emerge next and what impact will they have on our operations,” he said. “I am thrilled to be in the driving seat to lead the company at such a time. Challenges test the courage and determination of leaders. My team and I will meet these challenges, head on.
While demand for passenger vehicles has been strong in the local market, the industry has faced headwinds due to a global shortage of semiconductors, high raw material prices and, more recently, supply chain disruption due to Russian invasion of Ukraine and Covid-19. 19 borders in China.
In particular, the market leader had to deal with disruptions in production operations due to insufficient availability of chips. Maruti Suzuki’s share of local sales fell to 43.4% last year from 47.7% the previous year.
The company leads the entry-level SUV segment with a 23% market share. However, it has a modest presence in the mid-size SUV segment with a share of around 4-5%. This dropped the company’s overall presence in the country’s fastest growing passenger car category to 12-13%.
However, the company has a dominant market share of 67% in non-SUV categories, which is the highest ever, according to Shashank Srivastava, senior executive director at Maruti Suzuki.
Srivastava told ET that the company was sitting on an order book of 345,000 units, which was its highest on record, due to strong demand and supply issues.
Takeuchi said Maruti Suzuki has “been through good times as well as difficult situations” and over the years has maintained its leadership in the domestic market. “We have also gradually strengthened our exports and are taking them to new heights. All of this has been possible thanks to our continued focus on customers and their aspirations,” he added.