Small Cars Are Our Core, We'll Have More Of Them In Future, Says MSIL MD

India’s largest carmaker, Maruti Suzuki Ltd (MSIL), will continue introducing new small car models even as it expands its SUV portfolio to stay competitive, senior executives said on the sidelines of the launch of the Victoris, its new mid-size SUV.

“We like small cars,” said Hisashi Takeuchi, Managing Director & CEO, Maruti Suzuki India. “SUV is a big market, 55%. So we have to have products. But we believe small cars in India will continue, and we will keep introducing them, including new models. This is the base of our business.”

The comment comes amid expectations of a potential GST cut, which could provide a much-needed boost to the mass-market segment that has been under severe cost pressure since the Covid pandemic.

MSIL has repeatedly raised concerns over the continued decline in small car sales, saying that unless affordability is restored in this segment, overall passenger vehicle growth in the country will remain subdued. The automaker reported a modest 2.7% domestic sales growth in 2024-25, with small car sales falling by 9% during the year.

In contrast, the SUV segment has become the most competitive space in India’s auto industry. In 2024-25, the Tata Punch and Hyundai Creta were locked in a tight race for the title of India’s best-selling SUV. Meanwhile, Maruti’s Ertiga, Brezza, and Fronx ranked among the top five UVs. The Ertiga clocked 190,974 units in 2024-25, a 28% year-on-year jump, accounting for over a quarter of Maruti’s UV sales. The Brezza followed closely with 189,163 units, while the Fronx recorded its best-ever monthly performance in February 2025 with over 21,000 units sold, and finished the year with 166,216 units, up 23% from the previous year.

Takeuchi said that while small cars are critical, the company cannot ignore the SUV boom. “In order to maintain our leadership position, we have to be number one in SUV also,” he said. “In Nexa, we have the Fronx and Grand Vitara. In Arena, we have Brezza, which is very successful. But we were missing the mid-size SUV, which is a big, big market. Now I am very happy, because finally I can introduce this product. Now we have products in all segments.”

Despite this SUV focus, Takeuchi stressed that small cars remain central to Maruti’s strategy. “We keep developing models for the small car segment. Some are full model changes, some are new models. But of course, small cars — we don’t forget them. They are our core business. The task is to maintain our very high market share in small cars. In SUVs, the key is how much success we can get. If we can improve from 40% to 41–42%, that would be good. A 50% share is a very high target, but it cannot be achieved so quickly.”

“We see an opportunity. There is a wide space of young Indian customers who want a product that delivers an experience. So we have curated a product with that in mind. That is why we are launching this SUV,”  said Partho Banerjee, Senior Executive Officer, Marketing & Sales, Maruti Suzuki India.

Maruti Suzuki on Wednesday launched its new mid-size SUV, Victoris, marking a bold move to strengthen its foothold in India’s booming SUV market while also targeting exports to over 100 countries. The model is also the company’s first strong-hybrid offering to be retailed through its Arena dealerships. (Inputs from Ketan Thakkar).