The Future of Maruti Suzuki: What's Next for the Brand

Maruti Suzuki has held the title of India's largest automaker for over decades and has car models in multiple segments ranging from hatchbacks to SUVs. However, Maruti has not made its debut in the EV world but is expected to launch the eVX by October this year.

With Nexa’s (its premium outlet) addition in 2015, it has successfully achieved a 2 million sales milestone. Nexa has nameplates like Fronx, Invicto and Jimny. The other branch that sells the Wagon R, Swift and Dzire is called Arena. Let us find out what strategies Maruti Suzuki has adopted for the future.

Maruti’s Lineup

Maruti Suzuki currently sells 17 cars in the country, Arena and Nexa combined, but aims to increase the number of cars in the lineup to 28. This will also mark the debut of an electric vehicle in the form of the eVX SUV by October this year. The carmaker claims a maximum range of 550 kilometres with two battery packs on offer. This electric SUV will be manufactured in the company’s Gujarat plant and will also be exported to Japanese and European markets.

Even the sales network of the brand spreads to the length and breadth of the country, offering customers high-quality car services. According to reports, Toyota may introduce a car on similar lines later. Maruti has an alliance with Toyota in India and cars like Glanza, Taysor and Toyota Urban Cruiser are products of the same.

Nexa Dealerships

The reason why Maruti Suzuki is confident in making Nexa the second largest dealership network is because of its sales numbers in recent years. Over 5.09 lakh units were sold in 2023 alone. In 2022, Nexa cars registered 23% of sales from Maruti Suzuki’s overall sales numbers.

The company secured a sale of 3.7 lakh units in 2022 which grew by 48% when compared to the 2.55 lakh sales units in 2021. In addition, the company clocked a 10% market share of the overall car market in India. These figures are a testament to the mindset of the buyers and how much they love the Japanese brand.

Growth Strategy with the Fronx and Jimny

In 2023, Maruti’s market share doubled to 20% in the SUV segment. The carmaker’s market share in the SUV segment was low at 11% in 2022, while for the non-SUV segment, the market share stood at 65%. Taking this into account, the manufacturer now aims to increase the market share in the SUV segment, by at least 50% of the overall market share.

Suzuki is planning to strengthen their product portfolio with SUVs like the Maruti Suzuki Fronx and Maruti Suzuki Jimny but sales have been falling recently. At present, Baleno is responsible for having a large chunk of sales volume in Nexa’s lineup.

Price Challenges in the Future

Maruti is optimistic about India and has promised to invest Rs. 35,000 crore in another Gujarat plant to manufacture 1 million cars every year. The recent increase in prices is mainly attributed to RDE (Real Driving Emission) norms that were implemented last year.

Read Also: Maruti Suzuki Sales Universe

Apart from that, Maruti in January increased its prices due to an increase in the prices of raw materials and inflation. With the electric infrastructure still at a nascent stage and CNG pumps not present in remote areas, it remains to be seen how the brand will price its upcoming lineup and which powertrain would occupy a major chunk in their lineup.

FAQs

Q1. What are the Upcoming Projects of Maruti Suzuki?

There are half a dozen cars coming from the house of Maruti Suzuki in the coming years including the new Dzire, XL5 and eVX.

Q2. What is the Expansion Plan of Maruti Suzuki?

By 2030-31, Maruti Suzuki aims to increase its annual production capacity by 40 lakh units. It will also be taking up cars in its lineup from 17 to 28.

Q3. What is the Growth Plan of Maruti Suzuki?

With a 10% production rise target, Maruti Suzuki aims to double its production by 2030.