Maruti Suzuki Swift New Delhi: Maruti Suzuki is seeing revival in demand for the hatchback and sedan segments, according to Partho Banerjee, Senior Executive Officer, Marketing & Sales.
The company’s top-selling cars in December 2024 were all hatchbacks, he added. Swift sales totalled 29,765 units, followed by the WagonR with 29,566 units and then the Baleno with 26,789 units. "We are seeing good traction in the hatchback segment,” said Banerjee.
Maruti has also reduced its minimal network stock from 10 to nine days thanks to its robust retail performance. Earlier, inflation, elections, and heavy rainfall led to increased stock capacity while heavy discounts helped reduce inventory levels.
Maruti Suzuki Dzire The company’s sedans have also done well thanks to the 2024 Dzire. "In December, we had some production constraints but still sold 10,709 vehicles in wholesales. Our network stock is now negligible and everything has been retailed," Banerjee added.
Affordability is key
According to him, the car penetration level of the sub-10 lakh market, which is now 32%, can be increased by making vehicles more affordable. “The challenge for the entry-level segment is affordability. Vehicle prices have increased by almost 60% compared to 2018, but income levels have remained stagnant,” said Banerjee.
The sedan segment, which has been underperforming in recent months with a limited product portfolio and growing demand for SUVs, is also gaining traction. The Honda Amaze and Maruti Suzuki Dzire were the key affordable sedan launches this year. Maruti has over 20,000 pending bookings for the Dzire and has recorded a 4% year-on-year growth in the sedan segment. “While sedans may not be doing well, Maruti has performed well,” he added.
Rural demand up
Despite production constraints in December, the company plans to increase capacity this month to meet growing demand. The rural market has contributed significantly to sales with an overall growth of 10.1% in 2024, while urban growth remains moderate.
“The focus on reaching Bharat (rural India) has significantly contributed to market penetration and overall growth. The urban market recovery and sustained rural growth are expected to contribute to future performance,” said Banerjee. A better monsoon season and good MSP prices have helped drive growth in rural areas.
Maruti is also seeing its buyers going in for higher variants like ZXi for the Dzire compared to previous trends. “Nearly 37% of bookings are for the ZXi and ZXi+ variants, up from around 19% earlier,” he said.
Maruti Suzuki achieved an all-time high retail sales of 252,693 vehicles in December while the annual tally for 2024 was 1.79 million units. The SUV segment grew 21% in 2024, with the highest growth recorded in multipurpose vehicles.
