New Delhi:
The leader in the small car segment Maruti Suzuki is betting big on its midsize SUV, the Grand Vitara, to score and win the market-share, where it has faltered of late. The Grand Vitara is the company’s first model offering a strong hybrid powertrain.According to Hishashi Takeuchi, MD & CEO, Maruti Suzuki, the mid-size SUV segment in India is estimated to double in the next 3 to 4 years.
The company, whose market share dropped to 40.8% in Q1 FY23 as compared to 45.6% in the same period a year ago, said that while the overall share has declined in the market, its non-SUV (hatchbacks, sedans) market share is still 65%.
“Our share in the SUV segment is low because out of the 48 models present in the market, we contribute only 2 models. It is important to increase our share in the SUV segment to reach an overall 50% share in the PV segment. The new Grand Vitara will definitely contribute to this growth,” said Shashank Srivastava, Sr Executive Director- Marketing & Sales, Maruti Suzuki.
SUVs which now grab 40% of the share in the passenger vehicle (PV) segment include 22% contribution from entry-level category and 18% from midsize.
The SUV segment has grown tremendously in the past 4 years as customers have shown a strong inclination towards the new-age technology. “And today, we are delighted to present a much-awaited premium SUV, which will be another game-changer in the industry,” Srivastava said at the unveil of the new Vitara.
In line with the global collaboration pact between Suzuki and Toyota, Maruti’s new SUV will be made at the latter’s manufacturing facility in Bidadi, Karnataka. Production for the model will begin in the later part of August and it will hit the roads in September.
The Grand Vitara is Maruti’s version of Toyota’s Hyryder unveiled this month. While the platform and architecture is developed by parent Suzuki, the strong hybrid technology comes from Toyota.
Currently dominating the midsize SUV segment is the rival Hyundai’s 2nd-gen Creta launched in March 2020 and Kia Seltos introduced in August 2019. The Grand Vitara will also compete with the likes of MG Hector, Renault Kiger, Tata Harrier and the upcoming Toyota Hyryder.
The Grand Vitara will be sold via Maruti’s premium retail network Nexa which has 430 outlets in 270 cities across the country. It will also be exported to countries like Africa and Middle East. The new model comes with a 1.5 liter petrol powertrain mated with strong and mild hybrid technology. The carmaker claims that the model gets a fuel efficiency of 27.97 kmpl with the strong hybrid and 21.11 kmpl with mild hybrid.
Maruti, which opened pre-bookings for the new model on July 11, said it has received over 13,000 bookings in the first 10 days with 55% demand for strong hybrid option and 45% for mild hybrid.
The company which exited the diesel market in April 2020 said it expects the contribution of diesel in the midsize SUV segment to come down in the next few years. “About 6 years back, diesel contributed 100% of the volumes in the midsize SUV segment, 3 years later, it was reduced to 84% and until last year, this was at 51%.”
The maker of Swift and WagonR said that the chip shortage is comparatively better and the company is at 90% of its production target. Currently, the booking backlog amounts to 340,000 units.
Also Read:
Toyota marks its entry into the popular mid-size SUV segment with its hybrid Urban Cruiser Hyryder model set to hit the roads during the festive season this year. Though the company has no plans to bring the Hyryder in the fully electric version, it is looking at expanding its portfolio in India starting with this new model.
Slated to be Maruti’s most tech-forward and expensive SUV so far, the 2022 Grand Vitara makes its official debut today. According to the automaker, the SUV is scheduled to go on sale sometime in the following month. It will also be the first-ever strong hybrid SUV made by the company.
