Maruti Suzuki’s Penetration

The following article is based on my own interpretation of the said events. Any material borrowed from published and unpublished sources has been appropriately referenced. I will bear the sole responsibility for anything that is found to have been copied or misappropriated or misrepresented in the following post.

D.Kalyani, MBA 2014-16, Vinod Gupta School of Management, IIT Kharagpur

Maruti Suzuki is expecting that its market share and margins will increase with the new product launch of Ciaz in the premium sedan segment. The company, which had lost some market share in the overall sedan market, is expected to recover some of the losses in market share (currently 37-38 per cent) ,given Ciaz has a production rate of 5,000 units a month. Sedan sales for the firm were up 21 by per cent in FY15.

On April 2, 2015 Business Standards has quoted that “Among compact sports utility vehicles (SUVs), fastest growing segment within utility vehicles, the Ertiga and Gypsy sold 50,000 units for the period April to December in FY15, with a market share of 32 per cent. Aditya Makharia of JPMorgan believes within passenger cars, crossover vehicles are expected to drive sales, with multiple launches lined up. Given the importance of the segment, Maruti Suzuki has lined up a crossover (SX4 S-Cross) and a mini sports utility vehicle in FY16.Besides, it might enter the light commercial vehicle market and will be launching a model in the current financial year.”

Apart from that, Maruti Suzuki is eyeing big on the India’s rural market. On April 5, 2015 the leading newspaper The Economics Times has mentioned that “country’s largest car maker Maruti Suzuki is targeting to increase its penetration in rural areas by over 20 per cent to have presence in 1.5 lakh villages. “
With all these moves, Maruti Suzuki is trying to make its position strong in the auto industry with the increment in its car sales and expecting long term growth. With these advancements it is trying to address the needs of urban as well as rural market.