Once known as a leader in small cars, Maruti’s growth is currently being driven by super compact and mid-size cars, which have outpaced small car sales. The small cars or mini segment includes models like Alto and Wagon R has accounted for just 18.7 per cent of Maruti’s revenues in the first half of 2016. This is a dip from the 22.6 per cent share of revenues during fiscal 2014. In the same period, the super compact segment having models like Swift, Swift Dzire/Tour and mid-size segment cars  like Ciaz has grown steadily in terms of revenues.

The mini segment’s contribution to revenues contributes less than 15 per cent of the manufacturer’s profits, as per HSBC Global research report. The report also states that within hatchbacks, premium hatchbacks have been growing at a faster rate for the company. RC Bhargava of Maruti said, “We will offer what the customer wants and will never ignore the small car segment,” explaining that there are a lot of first-time buyers who are still upgrading from bikes to cars, as per ET

Industry watchers say that there is a fundamental change in consumer buying pattern. “With per capita income having doubled in the last 10 years, the entry (mini) segment is slowly losing its relevance, as consumers want better cars,” says VG Ramakrishnan, senior VP at Frost & Sullivan.

Maruti DZire - Front Three Quarters

Maruti’s earlier attempts into the premium segment with models like the Kizashi or Grand Vitara did not take off well, though in a segment lower, the SX4 did manage to garner some volumes. With the Ciaz and the recently launched Baleno , Maruti have garnered good volumes and are being recognized as a manufacturer who can offer competitive products in these segents as well. Also, recent launches like Ciaz, Ertiga, S-Cross, and Baleno carves a picture about Maruti’s interest in higher segment, as there is also a shift in consumer tastes and preferences, in a evolving market like India.

 

 

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