NEW DELHI: For the past few years, one in every two cars sold in India is a Maruti Suzuki. Going by Maruti Suzuki India Ltd’s (MSIL) current performance and future plans, one can easily say that its domination in the country’s passenger vehicle (PV) market is only expected to grow.
In the April-June period of FY9, MSIL sold 4,58,967 PV units against 3,67,386 units in the year-ago period, registering a growth of 24.93 per cent. Its market share during the first quarter increased to 52.54 per cent, up from 50.43 per cent a year ago.
“We grew at 25 per cent in Q1, while the industry grew at 20 per cent. When I say Q1, take it with a pinch of salt and take into account last year’s market disruption on account of GST,” said RS Kalsi, MSIL’s senior executive director of marketing & sales. “If you talk about long-term, the anticipation is that the market will grow at 7-8 per cent; we are targeting a double-digit growth. We are on track of achieving it,” he said.
Asked if the company expects its market share to touch 55 per cent by the end of this fiscal, Kalsi said that MSIL targets growth. “As long as growth is happening in line with our plans, I think we are happy with that. Market share is determined not only by our efforts, but also by the competition,” he said.
While MSIL’s market share in Q1 has gone up, its nearest competitor Hyundai, Mahindra & Mahindra and Honda Cars recorded a fall.
One of the most important reasons why MSIL is having such a smooth run in the Indian PV market goes to demand generated for its newly launched cars. From the premium hatchback Baleno to the recently launched Swift, MSIL cars dominate the monthly top-10 lists so much so that in June, the top five spots were filled by Maruti models. Its ongoing capacity expansion and network expansion plans further make it difficult for rival players to compete with Maruti. In the product line-up too, Maruti has been increasing its presence in every segment.
The company’s next launch is the facelift of Ciaz, which would come with a more powerful engine and will be available for buyers from mid-August. Apart from Ciaz, MSIL also has plans to increase its presence in the fast-growing SUV and volume-generating entry-level segments. Its collaboration with Toyota will further enhance its presence in the premium segment. To ready itself for Electric Vehicle shift and stay ahead, the carmaker is already conducting a mass research.
“We are doing a market research across the country to understand what the customers feel about EV, availability of personal charging infrastructure and its feasibility. We are trying to get a number of insights and once we get that study, we will proceed with our plans,” Kalsi said, confirming that the company will roll out its first EV in 2020.