Maruti Suzuki Stands Firm on Sedans, Launches New Dzire to Boost Compact Segment
In an era of automakers increasingly focusing on SUVs, Maruti Suzuki is taking a different approach. Despite the booming SUV trend, Maruti believes a balanced product lineup across all mass-market segments, including hatchbacks and sedans, is crucial to sustaining its high market share.
MD and CEO Hisashi Takeuchi reinforced this during the recent launch of the new Dzire, emphasizing the ongoing importance of sedans. “The SUV segment may be expanding, but each segment matters to us. To hold onto our market share, we need a presence in each category, especially in the sedan segment, which holds a traditional appeal,” Takeuchi stated.
While sales for hatchbacks and sedans have dipped over the past decade, Maruti Suzuki has steadily committed to the sedan category. The new fourth-generation Dzire is a much-needed update in the compact sedan space, featuring the Swift’s 1.2-litre three-cylinder Z12E engine and advanced safety features. With an investment of Rs 1,000 crore for its development, the new Dzire embodies Maruti’s confidence in the segment's potential.
Takeuchi highlighted the compact sedan segment as “a reliable and stable segment,” attributing consistent sales to it. Maruti aims to revive this category and expects that by 2030, sedans will represent around 10 percent of the passenger vehicle market, equivalent to nearly 600,000 units annually, according to Partho Banerjee, Senior Executive Officer for Marketing and Sales.
Today, sedans account for roughly 8 percent of passenger vehicle sales, with compact sub-4 meter models like the Dzire making up 70 percent of this share.
Maruti Suzuki has long held a 60 percent market share in the compact sedan segment, selling around 160,000 units of the Dzire last year. The model’s popularity spans both personal and fleet use, although 65-70 percent of Dzire sales come from personal buyers.
Fleet operators can still access the previous-generation Dzire, branded as the Maruti Tour S, which focuses on basic features and utility. This approach allows Maruti to prioritize personal mobility in the fourth-generation Dzire without sacrificing its presence in the fleet segment.
“With the previous Dzire, we had to balance the needs of personal and fleet users. Now, we can serve both sectors separately,” Banerjee explained.
As the new Dzire aims to reinvigorate the compact sedan market, it joins a competitive field that includes models like the Tata Tigor, Honda Amaze, and Hyundai Aura. Maruti's fresh investment in the Dzire signals a shift in strategy as the automaker strengthens its foothold across all market segments. This balance could be critical in helping Maruti retain its leading position in India’s diverse automotive landscape, ensuring sedans remain an essential part of the lineup despite the growing popularity of SUVs.
Also Read: