Maruti Suzuki eyes leadership in SUV segment; drives in new model 'Victoris'

New Delhi, Sep 3 (PTI) Maruti Suzuki India is looking to roll out more sports utility vehicles, including one for the premium segment, as it aspires to lead the robustly growing vehicle segment, its MD and CEO Hisaschi Takeuchi said on Wednesday.

The success in the SUV segment would also play a key role in the company regaining market share in the overall domestic passenger vehicle market, he noted. SUVs now account for around 55 per cent of the overall passenger vehicle sales in the country.

For Maruti Suzuki, India's largest carmaker, SUVs now account for 28 per cent of the overall sales.

Speaking with reporters on the sidelines of the launch of the company's new mid-sized SUV Victoris, Takeuchi noted that with SUVs now accounting for 55 per cent of the overall market, the segment could not be ignored.

Maruti Suzuki is a leader in entry-level (sub-4-meter) SUVs and is consolidating the mid-sized vertical (above 4-meter in length). It is also looking to foray into the premium segment (above 4.5 meters).

"There is some premiumisation in the Indian market. The trend is there. We are covering up to the mid-size SUV segment but then the over 4.5 meter SUV (segment) is becoming a decent market size. I think we definitely have to have one (product) in this segment. We are talking about this, and we are studying," Takeuchi said.

In order to maintain the company's leadership position in the domestic car market, it has to be number one in the SUV segment, he added.

Currently, Mahindra & Mahindra leads the overall SUV segment in the domestic market.

Takeuchi said the company already has a high market share in the small car segment and it would be the success in the SUV segment which could help it improve its market share gradually from the current level of around 40 per cent to over 50 per cent which it used to have earlier.

On Wednesday, the auto major expanded its product range with the launch of all-new SUV 'Victoris'. It is also set to introduce e-VITARA later this fiscal.

The country's largest carmaker currently sells models like Fronx, Brezza, Jimny and Grand Vitara in the SUV segment.

The automaker began by establishing a strong foundation in the entry-SUV segment with models like Brezza and Fronx, Takeuchi said.

These vehicles have won the hearts of customers and also helped the company secure a leadership position in the entry-SUV segment, he added.

Takeuchi said India has the largest youth population in the world, who will drive growth and become the company's current and future customers.

"The Indian automobile industry is changing as a new set of customers is entering the market. They are the young generation and represent the new India. So, we thought, why not create a product that raises the bar in the SUV segment," he said. Takeuchi noted that the contribution of SUVs continues to go up in the company's overall sales.

"Our SUV contribution to total sales has grown nearly threefold, rising from 8.9 per cent in FY 20-21 to nearly 28 per cent in FY 24-25," he added.

The mid-sized SUV market is currently around 9.5 lakh units per annum, accounting for around 40 per cent of the overall SUV segment.

"With Victoris we are strengthening our SUV portfolio and our overall market share," Takeuchi said.

On a query about the company's plans regarding introducing small cars as well, Takeuchi said: "We believe small cars in India will continue, and we will keep introducing small cars into this market, this is like a base of our business. But 55 per cent of sales are now SUVs and we can't ignore this market." When asked if the company would consider introducing Kei cars in India, he noted that under the current regulations it won't be easy to introduce them in an "economical and affordable) manner.

Commenting on the new SUV, Takeuchi said the model comes with multiple powertrain options, including strong hybrid and CNG.

"Victoris is our first car on the road to get Level-2 ADAS (Advanced Driver Assistance Systems) with automatic emergency braking, blind spot warning, lane departure prevention and many more," he added.

The model would be sold out from the company's Arena sales network and compete with the likes of Hyundai Creta, Kia Seltos and Honda Elevate.

Maruti Suzuki did not reveal the prices of the new model but noted that the company has invested around Rs 1,240 crore in the development of the new model.

Takeuchi noted that Victoris will be produced at the company's Kharkhoda plant. He also said that the SUV would be exported to around 100 markets globally.

To a query regarding the product impacting the sales of Grand Vitara, Takeuchi said the model being sold from its Arena network would cater to a different set of customers. Grand Vitara is sold through the company's premium Nexa sales network. PTI MSS MR