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. 

Related Stories

Gold Stories

Next Story
Infrastructure Transport

Innovision Wins NHAI Toll Collection Contract at Aashpur Fee Plaza

Innovision Limited has informed stock exchanges that it has been awarded a user fee collection and facility maintenance contract by the National Highways Authority of India (NHAI). The letter of award was issued on 10 August 2026 for operations at Aashpur Fee Plaza at design kilometre 231.100 on National Highway number 91 between Aligarh and Kanpur in Uttar Pradesh. The engagement covers collection of user fees for four and more lane sections and the upkeep and maintenance of adjacent toilet blocks including replenishment of consumable items. The contract was secured through a competitive e-te..

Next Story
Infrastructure Urban

Bharat Electronics Secures Rs.5,410 mn In Orders

Bharat Electronics Limited (BEL), a Navratna Defence Public Sector Undertaking, has secured additional orders worth Rs.5,410 million (mn) since the last disclosure on 31 July 2026. The fresh awards raise the company's recently reported intake and were announced by way of a regulatory filing on 10 August 2026. The orders span multiple business verticals and are incremental to contracts already under execution. The update follows the company's routine disclosure obligations to the stock exchanges. Major orders received include communication equipment, electro optics, ammunition fuzes, Chemical B..

Next Story
Infrastructure Urban

United Drilling Tools Receives US Order For Gas Lift Mandrel

United Drilling Tools Limited said it has received an order from Tri Lift Services Inc of the United States for the supply of a gas lift mandrel to be used in the oil and gas industry. The company said the disclosure was made to listing authorities under the Securities and Exchange Board of India listing rules and the SEBI master circular of November 2024. The notice set out the nature of the contract as commercial and awarded by an international entity. The order is to be executed in the ordinary course of business and carries an estimated contract value of Rs four point eight three million (..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement