Maruti becomes a leader in Rs 10-20 lakh segment with its new launches

The company was able to overtake its market rivals such as Hyundai, Tata Motors and Mahindra & Mahindra (M&M) by launching its premium models.

Maruti Suzuki’s premium models such as 4×4 Jimny off-roader and Invicto MPV which is considered to be a twin of Toyota Innova priced upwards at Rs 25 lakh, have been pushing sales in the premium segments as it vies for better product margins, improved profitability, and high-income customers.

“With a share of 23 per cent in the Rs 10-20 lakh category at the end of the first quarter (Q1) of FY24, Maruti leads the segment as we sell the maximum with models such as the Grand Vitara and Brezza SUVs, XL6 MPV, and the just-launched Jimny,” said TOI quoting Shashank Srivastava, director (sales & marketing) at Maruti Suzuki.

The automaker’s sales of Rs 10 lakh-plus vehicles increased dramatically in the past four to five years.

“While it was a mere 2.8% in 2018-19, the share of Rs 10-20 lakh vehicles grew to 16.3% at the end of FY23, and now stands at 19.6% in Q1 this fiscal,” Srivastava told TOI.Before entering this segment, Maruti has been a leader in the Indian market for its compact and budget cars. Maruti along with its rivals was able to cash in on the trend of the shift of customer preferences to SUVs and premiums after the Covid lockdowns. This trend showed that now customers are willing to go for relatively-expensive vehicles.

The company was able to leave behind its rivals by using the vehicles jointly developed (or sourced) with Toyota for this push. The hybrid Grand Vitara is a joint product and competes with models such as Hyundai’s Creta, and Kia’s Seltos.

Srivastava said that Maruti expects the share of premiums to also go up as the company starts to drive in electrics, beginning 2024-25.