Maruti Suzuki struggles to sell Alto, S-Presso in Sep’23

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People have literally given up on purchase of entry level cars in India. Automobile companies are having a rough time in sale of entry level cars. The share of small car sale in total sale of automobiles is continuously shrinking in the country. In September 2023, India’s biggest automobile manufacturer, Maruti Suzuki India (MSI) could sell only 10,351 units of mini car segment which comprises Alto and S-Presso. MSI registered total sale of 1,50,812 units of passenger vehicle (PV) in the same month. Mini cars constituted mere seven per cent of total PV sales of the Japanese automobile manufacturer in the month of September 2023.

Maruti Suzuki is constantly facing shrinkage of its share of mini car sales in total PV sales. Maruti Suzuki’s mini car sale has fallen to at least 13-year-low of 10,351 units in September 2023. Mini car segment’s share was more than 50 per cent back in September 2010. It has continuously fallen since then. And by September 2023, mini car’s sale has fallen to mere seven per cent. Even on year-on-year (YoY) basis, MSI’s mini car sale has fallen by 65 per cent in September 2023 from 29,574 units in September 2022.

While, during the same period, share of utility vehicles in MSI’s total PV sale has continuously expanded. Back in September 2010, utility vehicles sale comprised less than one per cent of total sale. And in September 2023, this particular segment comprised 39 per cent of total sale. In year ago period, utility vehicle segment’s share comprised of 22 per cent.

Maruti Suzuki’s Mini Car and Utility Vehicle Segments’ Share in total PV sales: 

Currently, MSI’s utility vehicle segment comprises of Brezza, Ertiga, Fronx, Grand Vitara, Invicto, Jimny, S-Cross and XL6.

Realising this changing consumer preference towards SUVs in India’s automobile industry, Maruti Suzuki jumped on the bandwagon of companies that are lining up with SUVs. In FY24, so far, MSI has already captured 22 per cent of market share in the SUV segment.

Going forward, the Japanese automotive company is committed to drive in a lineup of SUVs.