Maruti Suzuki India is betting on the continued relevance of premium hatchbacks even as SUVs strengthen their position in India’s passenger vehicle market. The premium hatchback segment grew faster than the overall industry during the first five months of the current financial year.
The premium hatchback industry is currently estimated at around 50,000 units a month, with Maruti Suzuki commanding about 70% of the segment, Partho Banerjee, senior executive officer, marketing and sales, Maruti Suzuki India, told Business Standard.
Maruti’s premium hatchback sales grew 28% between April and August, compared with 17% growth for the industry, Banerjee said. The company is looking to strengthen its position with the refreshed Baleno, which comes with several new features, including advanced driver assistance systems (ADAS).
Maruti expects the overall Indian passenger vehicle market to reach 6.1-6.3 million units by 2030. SUVs are estimated to account for 62-63% of the market by then, leaving roughly 37%-38% for hatchbacks and multi-purpose vehicles (MPVs).
“Our take is this industry will be around 6.3 million,” Banerjee said, adding that Maruti sees significant headroom for non-SUV segments.
The company estimates the relevant market could reach around 2.5 million units by 2030. Its own business in this space could potentially double from around 600,000 units currently to 1.2 million units.
Maruti currently sells around 16,000-16,500 Baleno units a month, while its Fronx crossover sells around 17,000-18,000 units. Both models are manufactured on the same production line, with the company calibrating output based on waiting periods for the two models.
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Maruti launched the Baleno refresh this weekend. The starting cost for this vehicle is Rs. 6.1 lakh. The company opened bookings at Rs. 11,000. The refreshed model also features ADAS with human detection, which Banerjee described as a first in the premium hatchback segment.
The company is positioning the new features around what it calls the ‘cosmopolitan’ customer, consumers seeking products that reflect their lifestyle and personality.
First-time buyers now account for about 46% of Baleno customers, with Maruti also seeing growing interest from entrepreneurs and startup owners.