Maruti Losing Market Share in India

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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