As soon as the bedrock of India’s passenger automobile market, small automobiles at the moment are quickly slipping into the shadows. Maruti Suzuki India, the nation’s largest carmaker, has raised the alarm over this sustained decline, calling for presidency incentives to rekindle curiosity within the phase that when drove India’s automotive growth.
Entry-level automobiles priced beneath ₹5 lakh have seen a steep fall in gross sales — from 9,34,538 models in FY16 to simply 25,402 models in FY25. Even Maruti Suzuki, traditionally dominant on this phase, recorded a drop in gross sales of its Alto and S-Presso fashions to six,776 models in Might 2025 from 9,902 models a 12 months earlier. Compact fashions like Baleno, Celerio, Dzire, Ignis, Swift, and WagonR additionally registered a decline, promoting 61,502 models versus 68,206 in Might 2024.
Partho Banerjee, Senior Govt Officer (Advertising and marketing & Gross sales) at Maruti Suzuki India, attributed the downturn to rising regulatory prices. “So someplace the federal government has to know that in the event that they need to gasoline the expansion of the auto trade, they should perceive the place the issue is and how one can enhance the dimensions of the pie (small automotive gross sales),” he mentioned. He added, “Some incentives are required in order that the client who will not be in a position to afford the automotive can are available and might migrate to a four-wheeler from a two-wheeler.”
Small automobiles made up 47.4% of the full passenger automobile (PV) market in FY18, barely dipped to 46% in FY19, and peaked at 46.5% in FY20. Since then, the share has constantly declined — 45.6% in FY21, 37.5% in FY22, 34.4% in FY23, and 27.7% in FY24.
On different fronts, the carmaker famous that it has not skilled any instant influence from China’s new export controls on uncommon earth magnets. Rahul Bharti, Senior Govt Officer (Company Affairs), mentioned the trade is working with the federal government on required end-user certificates. “In order that course of is on and trade is in dialogue with the federal government,” he said.
China controls over 90% of worldwide processing capability for these magnets, important to sectors like cars, home equipment, and clear power.
On exports, Maruti Suzuki is concentrating on a 20% enhance this fiscal 12 months, aiming to promote 4 lakh models in comparison with final 12 months’s 3,32,585 models. “Our goal for this 12 months (FY26) is at the least 4 lakh models, which suggests a development of at the least 20 per cent over FY25,” mentioned Bharti. He highlighted that their exports span practically 100 international locations with sturdy demand from Africa, Latin America, Southeast Asia, and now Japan, which has rapidly change into the corporate’s second-largest export vacation spot due to the Fronx and Jimny fashions.
“We do suppose that our market share in exports will develop this 12 months. We’re already at 43 per cent and the golden mark of fifty per cent is shut,” Bharti added.
In FY25, Fronx, Jimny, Baleno, Swift, and Dzire led Maruti Suzuki’s exports, with South Africa, Saudi Arabia, Chile, Japan, and Mexico amongst its prime locations.
(With inputs from PTI)
