Chairman of Maruti Suzuki (MSIL), RC Bhargava, stated on Friday that the expansion of India's passenger vehicle (PV) market depends greatly on the resurgence of entry-level car sales. The Chairman expressed optimism that within the next two to three years, there will be a renewed demand for smaller automobiles. Bhargava made it clear that without it, it is quite impossible that the PV business will develop at a rate of 6-7% per year in a market like India.
In CY 2023, the market for entry-level four-wheelers saw its lowest point ever. Despite a sharp decline in sales over the past five years, the luxury hatchback currently holds the majority of the market. The Renault Kwid, S-Presso, and Maruti Suzuki Alto are the cars in this class of small hatchbacks. The evidence is in the pudding, as the top automaker in the nation chose to discontinue the Alto 800, the best-selling vehicle in India, in 2023 just eight months after launching its latest iteration.
Maruti Suzuki's SUV rules the market
At the moment, the SUV category accounts for about half of the total market share. Maruti Suzuki has made significant progress in this market, going from an 11% share the previous year to nearly doubling it to 21% presently. The Fronx, which sold 100,000 units in ten months, became the fastest car in India to hit this historic record in any category, and it played a significant role in this achievement. In order to reach its long-term objective of holding a 50% market share, Maruti Suzuki thinks that the SUV class would be essential.
Maruti Suzuki now holds a 65% market share in the non-SUV segment; however, in order to reach the 50% market share target, they will need to capture 35–37% of the SUV market.
Maruti's Q2 net profit increased by 80% to Rs 3,716.5 crore
In Q2FY24, Maruti Suzuki announced an 80% increase in net profit year over year to Rs 3,716.5 crore, driven by improved sales, declining commodity prices, cost-cutting measures, and increased non-operating income. Net sales reached Rs 35,535.1 crore, up 24%. In the current fiscal quarter, the company sold 5,52,055 vehicles, compared to 5,17,395 units in the same quarter last year.
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