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Maruti to Focus on SUVs but Won’t Abandon Small Cars

2025-09-04

Maruti Suzuki India Ltd (MSIL), the country’s largest passenger vehicle manufacturer, reaffirmed its commitment to producing small cars while shifting strategic focus towards sport utility vehicles (SUVs), which now account for 55 per cent of total passenger vehicle sales in India.

“Small cars remain the foundation of our business, and we will continue introducing new models for the mass market,” said Hisashi Takeuchi, Managing Director and Chief Executive Officer of MSIL, speaking to reporters at a recent product unveiling. “However, with SUVs comprising 55 per cent of the market, we cannot overlook this segment. To sustain our leadership, we must also lead in the SUV category.”

Responding to questions about introducing Japan-style "K cars"—compact vehicles under 3.4 metres in length and 660cc in engine capacity—Takeuchi noted that while the idea could be explored, current emission and safety regulations would make them less economical for Indian consumers. “To make K cars successful in India, significant cost-reduction measures would be needed,” he added.

Chairman RC Bhargava echoed this sentiment at the company’s recent annual general meeting, predicting a revival in the small car market within the next one to two years. He emphasised that a substantial section of the Indian population, particularly two-wheeler owners, still seeks affordable, safer, and more practical transportation options.

“There’s no way India can depend solely on larger, luxury vehicles. People here want practical mobility solutions,” Bhargava said, pointing to Japan’s post-war introduction of K cars as a model worth considering. These compact vehicles, while subject to less stringent safety norms, attract lower taxes and are designed for urban affordability.

In the midst of this strategic balancing act, Maruti Suzuki has launched a new SUV model, the Victoris, which will be sold through its Arena dealership network. The company has yet to announce pricing, stating that the final figures will depend on the upcoming revisions in Goods and Services Tax (GST) rates.

With plans to serve both ends of the market, Maruti Suzuki aims to consolidate its leadership across vehicle segments by aligning innovation, affordability, and regulatory compliance in an evolving automotive landscape.

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