‘Not a one-month wonder, Maruti's hatchbacks jump 41% in H1 FY27’: Partho Banerjee

Hatchbacks and sedans show renewed traction even as SUVs dominate the wider market.

01 Oct 2026 | 81 Views | By Prerna Lidhoo

Maruti Suzuki’s small-car portfolio is showing signs of a revival, with sales across its mini, compact and midsize passenger car segments rising 24% year-on-year to 91,887 units in September 2026. The increase comes as the carmaker’s overall domestic passenger vehicle sales surged 36.9% to 1,81,838 units, suggesting renewed momentum at the lower end of the market after a prolonged period of weakness.

The segment, which includes models such as the Alto, Celerio, S-Presso, WagonR, Swift, Baleno and Dzire, sold 17,797 more units than in September last year.

“It shows it is not just one month wonder. Month after month it is happening. In the first half of FY27, Maruti’s entry hatchback sales grew 86%, mid-hatches by 40% and overall hatchback sales by 41%. Mini-car sales have also grown 39.8% in September,” said Partho Banerjee, senior executive officer, marketing and sales, Maruti Suzuki.

Maruti Q2 FY27 Sales Hit a Record as SUV Volumes Grow 56%

The numbers come at a time when SUVs continue to dominate the Indian passenger vehicle market. SUVs now account for around 57% of the market and the company itself has been expanding aggressively in the segment. Its SUV sales grew 56% in H1 FY27, reaching around 56,000 units a month.

Maruti’s overall domestic sales in the first half of FY27 reached 11 lakh units, while its Q2 domestic sales of 5,65,201 units were the highest it has recorded in any quarter. The company attributed part of the improvement to stronger supplies from its newly commissioned plant, but the mix of demand is perhaps more interesting than the headline volume.

Dzire, Baleno and Swift Keep Hatchback and Sedan Demand Strong

The company also pointed to strong demand for sedans, with the Dzire continuing to be the industry's best-selling model in the first half despite supply constraints.
The response to the refreshed Baleno has added another indication that buyers have not abandoned smaller cars.

Maruti sold 25,000 Baleno units in its first month after the facelift, calling it a record for the model. “When everyone was talking about only the SUVs, the hatch has also grown by 41%. There is a huge set of customers who are appreciating the other form factors also, be the hatches, be the sedans,” Banerjee said. The Dzire continues to attract strong demand, while the Swift is consistently doing 80,000-90,000 units, according to Maruti.

How GST 2.0 Lifted Entry-Level Car Sales

The GST 2.0 changes have also helped that equation, according to Maruti. Banerjee said the company immediately saw volumes improve after the new GST structure came into effect, reinforcing its view that vehicle pricing remains a key factor for entry-level buyers. “Being the market leader, somebody has to take this so-called mission of putting India on wheels,” he said.

Will CAFE 3 Norms Hurt Small Car Sales?

Maruti says it has more than two lakh pending bookings as of October 1 and just 17 days of network inventory. The company is also facing the next set of regulatory changes. One question is whether CAFE 3 norms could undermine the economics or appeal of smaller cars.

Maruti, however, does not see the new rules as a significant threat to demand. “That small benefit of 3 grams was not the only thing. In fact, that was a very small aspect. The larger aspect is the slope of the line and the slope of the line has an equal percentage reduction at all weights. So, it is fair for small cars also and it should not impact the growth of small cars,” Rahul Bharti, Senior Executive Officer, Maruti Suzuki India said.

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