Press Trust of IndiaJune 8, 2021 16:24:56 IST Maruti Suzuki India (MSI), the country’s largest automaker, is a mid-SUV to increase its market share
Press Trust of IndiaJune 8, 2021 16:24:56 IST
Maruti Suzuki India (MSI), the country’s largest automaker, is a mid-SUV to increase its market share in the vertical market to maintain its current 50% level of overall domestic PV sales. We are considering “some action” in the segment. According to company executives, it’s moving forward. Currently, the mid-SUV segment is dominated domestically, such as Hyundai Creta and Kia Seltos. Although MSI is in the S-Cross segment, this model has not been able to capture large amounts of data for automotive majors so far.
“Despite Vitara Brezza’s lead in the entry SUV segment, the market share of mid-SUVs is actually quite low. Mid-SUVs include the S-Cross, which was recently launched with a new engine. It’s August. It’s not an optimal number so far, but we plan to increase it over the next few years, “said Shashank Srivastava, Executive Director (Marketing and Sales) of MSI, in an analyst call.
He said the company is carefully considering this space.
“That is, yes, I make a product plan, but I’m really constrained. I can’t really say about future product plans for that segment. But yes, we are aware of that fact and this segment And definitely we’ll take some action there, “said Srivastava.
Maruti Suzuki is known to work with Toyota to launch a new mid-size SUV. Image: Tech2 / Amaan Ahmed
He acknowledged that the company’s overall market share in the sport utility vehicle (MPV) segment has been reduced due to the “non-optimal” performance of the fast-growing SUV segment.
“If you look at the big picture of SUVs (segments), I think that’s the problem, our market share is only 13.2%, but entry SUVs (segments) are involved,” Srivastava pointed out. ..
He added that S-Cross performance is not optimal for mid-SUVs. “It is here that our market share is reduced across the MPV segment.”
In order for the company to maintain a market share of about 50% in the domestic passenger car segment, it is important to make a significant mark in the growing SUV segment.
“As long as we maintain a large market share (50%), one of the constraints seems to be the current market share in the SUV segment,” says Srivastava.
He added that MSI is strong in the entry SUV segment, but premium SUVs are still small. “Therefore, the area of focus is the middle SUV segment,” he said.
In 2020-21, MSI’s market share in the passenger car (PV) segment remained at approximately 51%.
Srivastava commented on automakers’ performance in rural areas, saying it has now risen from about 38.5% of overall sales last year to 41%.
“As for the outlook, urban demand also recovered strongly in the fourth quarter of last year, but I think rural demand is still maintained,” he said.
For now, Srivastava added that local markets are likely to continue to rise. This is because the sowing of Harif and the harvest of rabbis are very good and the monsoon is expected to be close to normal.
More specifically, MSI Chief Financial Officer Ajay Seth said the overall contribution of sales from non-urban markets increased by 2.5% between 2020 and 2021.
“During the year, we’ve also seen some changes in consumer profiles. Driven by the growing need for personal mobility, the participation of first-time buyers has increased.
“Also, given the slump in economic activity and the uncertainty of income growth, customers continued to use their existing cars, reducing replacement demand in the previous fiscal year,” he pointed out.
Maruti Suzuki Focuses on Fast-Growing Midsize SUV Segment, Preparing Product Plan-Technology News, Firstpost
Source link Maruti Suzuki Focuses on Fast-Growing Midsize SUV Segment, Preparing Product Plan-Technology News, Firstpost