Maruti Suzuki Starts Building Its New Micro SUV; to Rival Tata Punch

We reported earlier that Maruti Suzuki is considering a new micro SUV, which will be positioned below the Fronx crossover. A new media report claims that Maruti Suzuki has finally started working on its new micro SUV, which will directly rival the Tata Punch. It will be the brand’s new entry-level offering, which will come as an alternative to small hatchbacks. 

First time car buyers are now looking for SUV-styled vehicles, and Maruti is also witnessing a significant growth in the SUV space. The brand’s market share in the SUV space increased from 16.8 percent to 19.6 percent in FY26. The report claims that the new Maruti micro SUV is expected to have an upright SUV styling, and will be loaded with high-end features. The company will continue with its multi-engine strategy, and the new micro SUV will have multiple powertrain options. 

The new Maruti micro SUV will be offered with mild-hybrid, CBG/CNG and electric powertrains. This model will be positioned alongside the Swift hatchback, which is one of the best-selling Marutis in India. It is expected to be based on the Suzuki’s HEARTECT platform that also underpins the Swift, Fronx, Baleno and Dzire. 

Maruti micro SUV

Internally codenamed Y43, the new micro SUV is likely to be offered with 1.2L, 3-cylinder, petrol engine with a mild-hybrid setup. The company could also offer the 1.0L 3-cylinder, turbo petrol engine with manual and automatic gearbox options. This micro SUV will appeal primarily to first-time car buyers looking for a compact SUV with a high ground clearance. In fact, buyers in India are ready to shed extra to drive home an entry-level SUV over hatchback. This is evident from the huge success of the Tata Punch, which was launched in 2021. 

MSIL is also working on a strong hybrid powertrain, which will first debut in the Fronx crossover in 2027. We expect that the new micro SUV could also get a strong hybrid powertrain. Its EV version could be based on the brand’s new skateboard architecture. 

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