Suzuki Motor Corporation, the parent company of Maruti Suzuki India (MSIL), on Wednesday, said India still has a big potential for small cars and that the company will regain its 50 per cent market share in future with more products in future.
The small car segment, which is the bread and butter for SMC’s Indian arm, has been declining with the demand for sports utility vehicles (SUVs) rising in India.
“Small cars is still important...in India there are 1.4 billion population, but only 0.3 billion people are using vehicles and that is the penetration level. So, still there is a potential of 1.1 billion people using vehicles. Therefore, small car has the potential in future as well...in the auto industry, with the revolutions happening, you might not require big cars, but it can be only small cars which will be using for their mobility,” Toshihiro Suzuki, Representative Director and President, Suzuki Motor Japan, told reporters here on the sidelines of the Auto Expo 2023.
For instance, in Japan, the small cars are matching the demand for domestic market, so the same efforts can be made in the Indian market, too.
He admitted that due to the delay in bringing SUVs into the Indian market, MSIL has lost market share and the company would bring in more products in the segment to regain its share of 50 per cent in the passenger vehicles category. The company has little over 42 per cent market share right now.
“We are in the process of taking action and recovering market share..SUV is a boom..but what would be the next boom, we need to watch,” said Suzuki, adding that the company will launch its new SUV on Thursday at the Expo here.
When asked about the Indian market surpassing Japan in global automotive market and becoming number three, Suzuki said India has the potential of becoming number one market also.
“When I say India can become the number one, that is from the perspective that India has the potential to become number one, and I see that there is a possibility that India can become number one,” he said. In 2022, India overtook Japan to become the third largest automotive market in the world after China and the US, having sold over an estimated 42.5 lakh units.
When asked about roadmap to electric vehicles (EVs) in India, he said On the roadmap for the company’s sustainable products in India, he said that the future is not only about the EVs but also the alternate fuels like CNG, Flex fuel, Hydrogen and Ethanol.
“...solution can’t be one…when it comes to launching apt vehicles in India, it should be apt for the Indian market. So SMC does not want to be swayed by EV only option. There are other options such as hybrid, ethanol and flex fuel,” he said. He added that MSIL will also expand its CNG portfolio in order to meet customers demand.