From 9.3 Lakh to 25 thousand units: Maruti suzuki

Once the foundation slides in the vehicle market in India, small cars quickly slide into the shade. Maruti Suzuki India, the country’s largest car company, has caused a warning due to this continuous decline, and called for government incentives to revive attention to the sector that once led in the boom of cars in India.

Beginning cars at a price of less than $ 5 witnessed a sharp decrease in sales-from 9,34,538 units in the 2016 fiscal year to 25,402 units only in the 25th fiscal year. Until Maruti Suzuki, historically dominant in this sector, recorded a decrease in Alto and S-Presso to 6776 units in May 2025 from 9,902 units in the previous year. Customd models such as Baleno, Celerio, Dzire, Ignis, Swift and Wagonr declined, as 61,502 units were sold for 68,206 in May 2024.

Patho Panerry, chief executive official (marketing and sales) at Maruti Suzuki India, has a decline to high regulatory costs. “Somewhere the government must understand that if they want to fuel the growth of the auto industry, they must understand the location of the problem and how to increase the size of the pie (small car sales),” he said. He added: “There is a need for some incentives so that the customer who cannot afford the car costs can enter and can move to two quadruple wheels.”

Small cars make up 47.4 % of the total passenger vehicle market (PV) in the 18th year, and decreased slightly to 46 % in the fiscal year 19, and its peak was 46.5 % in the fiscal year 20. Since then, the share has constantly decreased – 45.6 % in FY21, 37.5 % in the fiscal year 22, 34.4 % in FY23, and 27.7 % in the Fiscal year 24.

On other fronts, the car maker noticed that he had not experienced any immediate effect of the new export controls in China on rare Earth magnets. Rahul Bahriti, the first executive official (corporate affairs), said that the industry is working with the government on the required user certificates required. “Therefore, this process is under operation and industry in discussion with the government,” he said.

China controls more than 90 % of the global processing capacity of this magnet, which is necessary for sectors such as cars, devices and clean energy.

On exports, Maruti Suzuki aims to increase by 20 % in this fiscal year, with the aim of selling 4 units of Cham compared to 3,32,585 units last year. Bahariti said: “Our goal for this year (FY26) is at least four units of Lakh, which means a growth of at least 20 percent for the 25th fiscal year.” He highlighted that its exports extend to nearly 100 countries with a strong demand from Africa, Latin America and Southeast Asia and now Japan, which quickly has become the second largest export destination for the company thanks to Fronx and Jimny models.

“We believe that our market share in exports will grow this year. We are already 43 percent and that the golden mark of 50 % is close.”

In FY25, Frontx, Jimmy, Baleno, Swift and Dzire led Maruti Suzuki’s exports, with South Africa, Saudi Arabia, Chile, Japan and Mexico among its most important destinations.

(With PTI inputs)