Maruti Suzuki wholesale volumes are up 10% in March 2024. Total wholesales volumes stood at 187,196 units with passenger cars constituting 44% of total volumes. Mini (11,829 units) & compact cars (69,844 units) and light commercial vehicles (3,612 units) reported lackluster growth in March 2024. Mid-size car wholesales volume at 590 units grew 97% YoY. Utility vehicle category with wholesale volumes of 58,436 units jumped 58% YoY in March 2024. Maruti Suzuki’s market share has grown to 20% from high single digits in the Indian SUV market over the past one year. The company launched Fronx, Jimny, Brezza, Grand Vitara and Invicto to strengthen its portfolio in the SUV segment which presently comprises nearly 50% of the passenger vehicle market in India. While small cars’ minimum price is in the range of 4 lakhs for Maruti Alto, the price range for the SUV segment starts from Rs 8 Lakh. The price range for Maruti Suzuki Brezza available in a number of variants starts from Rs 8-14 lakh. Thus the SUV segment is a key growth and profitability driver for all original equipment manufacturers in the passenger vehicle industry.
Maruti is expected to launch an electric SUV by the end of the year and also a seven-seater Grand Vitara and a new version of Fronx. While the SUV segment has changed the contours of the Indian passenger vehicle market, mini and compact cars still constitute nearly 40% of total Maruti wholesale volumes. Speaking on small car demand in Q3FY24 post conference call, Rahul Bharti, Chief Investor Relations Officer and Executive Officer, Corporate Planning had said, “Due to regulatory intensity and introduction of too many regulations together, the small car cost went up suddenly. There is a strong latent customer demand for cars, but it’s a function of affordability.” Maruti Suzuki expects small car demand to improve in the future but not immediately. In the period January-March 2024, Maruti Suzuki reported wholesale volume growth of 13.4%.
