The largest passenger car maker in India, Maruti Suzuki, is losing market share in the compact car segment even though it still remains the industry leader, according to a report from brokerage firm Macquarie.
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According to the said report, Maruti is losing market share in the INR 4 lac to INR 7 lac base model price segment which includes hatchback and micro SUVs. Macquarie wrote in its report:
“Near-term demand for small cars will remain tepid in our view, given the product price hike in the last couple of years impacting affordability.”
After factoring in micro-SUVs, Maruti Suzuki’s market share in the INR 4 lac — 7 lac price range is down from 67% in the financial year 2021 to 58% in the current financial year and 54% as of the December quarter. Macquarie thinks Maruti Suzuki’s competitive advantage is still distribution and fuel efficiency, but that the market share recovery could be jeopardized by micro-SUVs.
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According to Macquarie, Maruti’s competitive intensity will increase due to rising consumer preference for SUVs, expanded model options with micro-SUVs, improved safety ratings, and greater product features.
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