Maruti Suzuki Says Small Cars Back in ‘Healthy Black’ as First-Time Buyer Share Rises to 47%

India’s largest car maker, Maruti Suzuki India, said the small car segment has returned to “healthy black” growth, reversing an earlier slowdown, even as the carmaker continues to hold prices steady, with the recovery being driven largely by first-time car buyers.

Speaking to analysts after the company’s Q3 FY26 earnings, Rahul Bharti, Executive Officer, Corporate Affairs at Maruti Suzuki India, said the demand for small and compact cars has swung sharply back into positive territory, marking a stronger recovery than seen in larger vehicle segments.

“Small cars were earlier in a negative growth zone. They have moved from red into black and healthy black, and that swing is actually larger than what we are seeing in bigger cars,” Bharti said.

Bharti said the revival has been supported by the company’s decision to hold pricing, even as affordability improved following the GST reform, helping bring entry-level customers back into the market.

The orderbook is still getting serviced, and a potential price revision may be reviewed in the coming weeks. 

The recovery in small cars has been accompanied by a significant increase in first-time car buyers, Bharti said, with their share rising to around 47%, up from about 40% earlier, an increase of nearly 7 percentage points.

“That is a very healthy sign,” Bharti said, adding that anecdotal indicators suggest a renewed upgrade cycle from two-wheelers to cars.

“We are seeing a lot of helmets in our showrooms, which indicates that two-wheeler owners are upgrading to small and compact cars,” he said.

Bharti said demand remains healthy across segments, including SUVs, though wholesale volumes may not fully reflect underlying consumer appetite due to supply constraints and production choices across models.