Maruti Suzuki Expects 2% Market Share Gain in India in Q1

Maruti Suzuki India expects its passenger vehicle market share in India to increase by around 2 percentage points in the first quarter of FY27, as the country’s largest carmaker says strong demand across rural and urban markets, record CNG sales, improving SUV volumes and a recovery in the entry-level car segment helped it outperform the broader industry.

Speaking during the company’s June sales briefing, Senior Executive Officer (Marketing & Sales) Partho Banerjee said Maruti Suzuki expects its market share to rise to around 41%, once the quarter’s industry numbers are finalised.

“I think we need to wait for some more time, but in the quarter, we are very sure we are going to have a gain of at least 2 percentage points in wholesale and retail. We should be around 41% plus or minus,” Banerjee said.

The company said the expected gain has not been driven by any single market or product segment, but by broad-based demand across its portfolio.

“It is a combination of both,” Banerjee said when asked whether the growth was being driven more by rural or urban markets. “India as a country, we need to cater to all segments. Right now, the rural market is supporting us. At the same time, our SUV portfolio is also giving us very good dividends. The small cars are doing fantastic.”

Maruti Suzuki’s rural business grew 45% during the quarter, with rural markets accounting for 53.1% of its overall sales. At the same time, SUVs now contribute around 30% of the company’s portfolio, reflecting improving acceptance in one of the industry’s fastest-growing segments.

CNG continued to be another key growth driver. The automaker reported its highest-ever quarterly CNG sales of 218,213 units, while CNG penetration across domestic sales rose to around 41% during the quarter and approximately 42% in June.

Banerjee attributed the stronger CNG performance to rising fuel prices and increasing customer preference for lower running costs, supported by the company’s “Clean and Green” campaign. He added that CNG penetration in Maruti Suzuki’s latest SUVs has now crossed the 50% mark, highlighting growing consumer acceptance of the technology even in the utility vehicle segment.

The company also reported a revival in the entry-level car market. Banerjee said the Alto K10 and S-Presso together recorded their highest quarterly sales in three years, reinforcing Maruti Suzuki’s long-held view that affordable cars continue to have significant headroom for growth if offered at the right price.

“We have always been saying that India has huge potential for small cars. If somebody comes with the right product at the right price, there is going to be huge potential for small cars,” he said.

The company’s confidence was also backed by stronger retail performance. Despite a one-week production shutdown in June for annual maintenance, retail sales exceeded wholesale dispatches during the month, allowing Maruti Suzuki to reduce dealer inventory to around 35,000 vehicles, equivalent to roughly 14 days of stock.

Management said the healthy retail momentum, coupled with lower dealer inventory and broad-based demand across rural markets, SUVs, CNG and small cars, enabled Maruti Suzuki to outperform the passenger vehicle industry during the quarter and underpin its expectation of a higher market share in India.