Maruti to Focus on SUVs but Won’t Abandon Small Cars
ECONOMY & POLICY

Maruti to Focus on SUVs but Won’t Abandon Small Cars

Maruti Suzuki India Ltd (MSIL), the country’s largest passenger vehicle manufacturer, reaffirmed its commitment to producing small cars while shifting strategic focus towards sport utility vehicles (SUVs), which now account for 55 per cent of total passenger vehicle sales in India.
“Small cars remain the foundation of our business, and we will continue introducing new models for the mass market,” said Hisashi Takeuchi, Managing Director and Chief Executive Officer of MSIL, speaking to reporters at a recent product unveiling. “However, with SUVs comprising 55 per cent of the market, we cannot overlook this segment. To sustain our leadership, we must also lead in the SUV category.”
Responding to questions about introducing Japan-style "K cars"—compact vehicles under 3.4 metres in length and 660cc in engine capacity—Takeuchi noted that while the idea could be explored, current emission and safety regulations would make them less economical for Indian consumers. “To make K cars successful in India, significant cost-reduction measures would be needed,” he added.
Chairman RC Bhargava echoed this sentiment at the company’s recent annual general meeting, predicting a revival in the small car market within the next one to two years. He emphasised that a substantial section of the Indian population, particularly two-wheeler owners, still seeks affordable, safer, and more practical transportation options.
“There’s no way India can depend solely on larger, luxury vehicles. People here want practical mobility solutions,” Bhargava said, pointing to Japan’s post-war introduction of K cars as a model worth considering. These compact vehicles, while subject to less stringent safety norms, attract lower taxes and are designed for urban affordability.
In the midst of this strategic balancing act, Maruti Suzuki has launched a new SUV model, the Victoris, which will be sold through its Arena dealership network. The company has yet to announce pricing, stating that the final figures will depend on the upcoming revisions in Goods and Services Tax (GST) rates.
With plans to serve both ends of the market, Maruti Suzuki aims to consolidate its leadership across vehicle segments by aligning innovation, affordability, and regulatory compliance in an evolving automotive landscape. 

Maruti Suzuki India Ltd (MSIL), the country’s largest passenger vehicle manufacturer, reaffirmed its commitment to producing small cars while shifting strategic focus towards sport utility vehicles (SUVs), which now account for 55 per cent of total passenger vehicle sales in India.“Small cars remain the foundation of our business, and we will continue introducing new models for the mass market,” said Hisashi Takeuchi, Managing Director and Chief Executive Officer of MSIL, speaking to reporters at a recent product unveiling. “However, with SUVs comprising 55 per cent of the market, we cannot overlook this segment. To sustain our leadership, we must also lead in the SUV category.”Responding to questions about introducing Japan-style K cars—compact vehicles under 3.4 metres in length and 660cc in engine capacity—Takeuchi noted that while the idea could be explored, current emission and safety regulations would make them less economical for Indian consumers. “To make K cars successful in India, significant cost-reduction measures would be needed,” he added.Chairman RC Bhargava echoed this sentiment at the company’s recent annual general meeting, predicting a revival in the small car market within the next one to two years. He emphasised that a substantial section of the Indian population, particularly two-wheeler owners, still seeks affordable, safer, and more practical transportation options.“There’s no way India can depend solely on larger, luxury vehicles. People here want practical mobility solutions,” Bhargava said, pointing to Japan’s post-war introduction of K cars as a model worth considering. These compact vehicles, while subject to less stringent safety norms, attract lower taxes and are designed for urban affordability.In the midst of this strategic balancing act, Maruti Suzuki has launched a new SUV model, the Victoris, which will be sold through its Arena dealership network. The company has yet to announce pricing, stating that the final figures will depend on the upcoming revisions in Goods and Services Tax (GST) rates.With plans to serve both ends of the market, Maruti Suzuki aims to consolidate its leadership across vehicle segments by aligning innovation, affordability, and regulatory compliance in an evolving automotive landscape. 

Next Story
Infrastructure Urban

Mumbai is on the verge of complete transformation

Pratap Padode: Maharashtra’s infrastructure plan seems to be rolling out project after project: the Navi Mumbai International Airport, Coastal Road, Shaktipeeth Expressway, Worli-Sewri Connector and Vadhavan Port. What is driving this momentum?Ashwini Bhide: Maharashtra has always been at the forefront of infrastructure development. Our vision is to be a $ 1 trillion economy by 2030 and $ 5 trillion by 2047. To achieve this, massive investments in infrastructure are essential. Being over 50 per cent urbanised, our cities must be future-ready. We are also addressing regional disparities, focu..

Next Story
Building Material

Forging a Balance

The ongoing boom in real estate and infrastructure was bound to spill over to the steel sector. Rating agency ICRA estimated demand for domestic steel to have grown at 10 per cent in FY25, but to moderate to 7-8 per cent in FY26 on the back of a slowdown in public capital expenditure.Homemade steelAbout two-thirds of India’s domestically produced steel is consumed by infrastructure and construction, and nearly a third for government projects, observes Shalabh Chaturvedi, Managing Director, CASE Construction Equipment, India & SAARC region. Real estate predominantly uses only domestic steel..

Next Story
Infrastructure Urban

Equipment India Awards 2025

On September 4, 2025, at the Jio Convention Centre, Mumbai, Anand Sundaresan, Director on the Board and Advisor to the Chairman at Ammann India, received the Equipment India Lifetime Achievement Award 2025, as the hall rose and gave him a standing ovation. For an industry that has seen him steer organisations, inspire teams and raise standards, this moment was more than recognition – it was gratitude.Sundaresan’s acceptance struck a chord with warmth and humility: “I accept it with pride and dedicate it to my family, colleagues and the entire construction industry. This aw..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?