As soon as the bedrock of India’s passenger automobile market, small automobiles are actually 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 section that when drove India’s automotive increase.
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 section, recorded a drop in gross sales of its Alto and S-Presso fashions to six,776 models in Could 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 Could 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 grasp that in the event that they need to gas the expansion of the auto business, they should perceive the place the issue is and the best way to enhance the scale of the pie (small automobile gross sales),” he mentioned. He added, “Some incentives are required in order that the client who isn’t capable of afford the automobile can are available and may migrate to a four-wheeler from a two-wheeler.”
Small automobiles made up 47.4% of the overall 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 speedy influence from China’s new export controls on uncommon earth magnets. Rahul Bharti, Senior Govt Officer (Company Affairs), mentioned the business is working with the federal government on required end-user certificates. “In order that course of is on and business is in dialogue with the federal government,” he said.
China controls over 90% of worldwide processing capability for these magnets, important to sectors like vehicles, home equipment, and clear power.
On exports, Maruti Suzuki is focusing 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 not less than 4 lakh models, which suggests a development of not less than 20 per cent over FY25,” mentioned Bharti. He highlighted that their exports span practically 100 international locations with robust demand from Africa, Latin America, Southeast Asia, and now Japan, which has rapidly turn out to be 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 high locations.
(With inputs from PTI)
