“We will fight to get back to our 50 per cent market share. How much we succeed only time will tell but we certainly don’t intend to walk away and say no we don’t want to fight for it. We will fight for our market share,” Bhargava told PTI.
After reaching a peak of 51.21 percent in FY19, the auto manufacturer, which is celebrating 40 years in business, saw its market share fall to 43.38 percent in FY22.
The corporation intends to introduce models that are suited for both large and smaller cities as well as rural locations in an effort to regain its overwhelming leadership.
In order to achieve the sales targets, the company will introduce sports utility vehicles (SUVs) or any other bodystyles in the market to satisfy the customer, Bhargava revealed.
Domestic passenger vehicle sales in 2018–19 totaled 33,77,436 units, however they fell to 30,69,499 units in 2021–22.
achieved its highest-ever annual sales of 17,29,826 units in 2018-19, cornering a market share of 51.21 per cent. It declined to 43.38 per cent at 13,31,558 units in 2021-22.
“I believe the Indian customer has a lot of faith and a lot of trust in the Maruti brand and we will work to maintain the trust of the customer,” Bhargava said.
Bhargava noted that the domestic market has become segmented into a ‘Bharat’ — referring to the lower price spectrum — and an ‘India’ market where more expensive premium products are sold.
“Earlier it was a more homogeneous market when we started. One of the things we have to do now is to make sure that we have products for both segments of the market,” he highlighted.
He admitted that “there has been a period in the last four or five years where we (Maruti Suzuki) haven’t had adequate products for the India’ market.”
“We are removing that deficiency,” he added.
To increase its market share in the compact and mid-sized SUV segments, which are currently dominated by South Korean automakers like Hyundai and Kia, the business has planned a number of SUV launches.
Even domestic automakers Mahindra & Mahindra and
have seen increases in market share as a result of their SUV offerings.
“So now we are clear that in India, there are these two markets and we have to have separate kinds of strategies for both markets,” Bhargava said.
In response to a question on whether the carmaker will continue to produce tiny cars, he said that while some Indian buyers have become wealthier and can now purchase premium models, the majority still cannot afford pricey automobiles.
“Let’s stay with the Bharat market. When can the Bharat market afford a Rs 10 lakh-Rs 15 lakh car or SUV? Till that happens, there’s no option for them but a small car,” Bhargava said, reiterating the company’s commitment to also cater to the lower end of the spectrum with its small cars.
Many two-wheeler riders want to switch to vehicles, and their first preference will likely be modest, entry-level models rather than pricy SUVs, he said.
With a starting price of 3.99 lakh, the business recently introduced an entirely new model of the Alto K10, its entry-level hatchback.
Bhargava added that it was critical to maintain the segment’s affordability and that tiny automobiles provided a significantly safer ride than two-wheelers.
Inputs from PTI
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