Automobile

Maruti’s rise as an SUV, MPV maker has a hidden message for its balance sheet. (Think affordability)

By Eduardo Saverin

Bloggers take photos of the new Maruti Suzuki Invicto SUV car during its launch event in Gurugram on July 5, 2023.

Synopsis

Utility vehicles are set to become the biggest revenue driver for Maruti this financial year. But despite new SUV launches, Maruti’s revenue market share has fallen to only 28.6% in April-May 2023 compared with a volume market share of 41.9%. If India’s number 1 carmaker wants to improve its product mix further, it will need to rethink how it does business.

Small Is Beautiful. German-born British economist E F Schumacher had told us in his 1973 book. A decade later, Maruti 800 proved to the world why small is big. Maruti reportedly received orders for more than 135,000 units in just two months for a car that carried a price tag of INR47,500 back then. In the years and decades to follow, Maruti’s frugally engineered small and compact cars ruled the Indian roads, and the company’s balance sheet.

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Eduardo Saverin