Not discouraged by the reducing demand for small cars, Maruti Suzuki on Thursday declared that small cars will not be disappearing soon and we will not give up on them.
“Current market is driven by big SUVs, sedans etc. to which Maruti made a strong comeback of not losing their focus on small cars. Even the company is planning to drive in electric mini cars. They believe that small cars market is never diminishing and its demand will have a comeback in the near future where people will opt for small compact cars rather than big ones”, said Hisashi Takeuchi.
The company’s operations began in 1983 with largest foundations in mini cars such as Maruti800, Alto, swift and the bestseller WagonR and Baleno.
CEO and MD of Maruti, Takeuchi, stated that they are still making money from small cars even after the 50% share of market has driven to SUVs. They have also introduced the new-gen swift and they are continuing to maintain share in the market in small cars category. Sooner or later, demand for small cars will come as the economy goes up.
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Swift, which was launched in 2005 by Maruti was their biggest successful mini car and they have sold near 30 lakhs units till date. To upgrade the model, they have spent an additional of 1400 crore rupees as they believe it will help them grow in this category. Despite a great fall in small cars category, swift still remained adamant and maintained a clean 10% growth last year.
JATO Analytics’ president Ravi Bhatia stated that increasing population will depend on small cars due to rise in pressure and low income states.
Currently, SUVs have a 50% share in the vehicle segment after a progressive boom in their demand. Share of small cars have declined to 28% which was over 50% a few years back.
