Maruti Suzuki may Continue Tactical Pricing as Entry-car Demand Revives

Maruti Suzuki may continue with tactical pricing on its entry-level models as demand for small cars strengthens and first-time buyer participation rises, even as supply constraints persist, a senior company executive said.

Speaking at the company’s December sales briefing, Partho Banerjee, senior executive officer – marketing and sales, said the automaker is reviewing whether to extend the current pricing strategy introduced after the GST reset, as booking momentum in entry models remains strong.

“We have a pending booking of more than one and a half months even after seeing nearly 100% growth in this segment,” Banerjee said. “So, we are evaluating whether to continue with the current pricing or revert to earlier levels. That decision will be taken shortly.”

Maruti Suzuki has seen a clear rebound in its entry-level portfolio following the GST revision, with the mini segment now accounting for 6.2% of the company’s total sales, according to Banerjee. He said the segment has shown a sharp sequential improvement, particularly in the second half of the year, after demand had softened earlier due to affordability pressures.

“There is a visible improvement post-GST. If you compare the first half with the third quarter, the difference is quite clear,” he said, adding that growth in the mini segment has accelerated sharply in recent months.

The company also saw a rise in first-time buyers, particularly in smaller towns. “We are seeing a meaningful increase in first-time buyers, especially in the small car segment. The share has gone up by around five percentage points,” Banerjee said.

Demand recovery has been most pronounced beyond the top 100 cities, where affordability improvements have had a more substantial impact, he added.

However, Maruti Suzuki said it continues to face supply constraints and is carefully balancing production across segments to avoid skewing output toward any single category.

“We are trying to serve all customers fairly. If we increase production of one model, it impacts another. So, we are balancing our output across segments,” Banerjee said.

The company ended December with retail sales of 286,000 units, pending bookings of around 175,000 units, and an inventory of just three days, highlighting the tight supply-demand situation.

Maruti Suzuki said it would continue to monitor market conditions before taking a final call on pricing, while focusing on reducing waiting periods and managing demand sustainably.