Maruti Suzuki doubles down on SUVs as small cars sale slides

The new SUV will be only the second product from Suzuki globally in this category, underscoring India’s central role in the company’s growth strategy.

Maruti Suzuki India Ltd. is set to expand its SUV portfolio with a second mid-sized model, people familiar with the plan said, as the nation’s top carmaker scrambles to counter slowing demand for its bread-and-butter small cars.

The Indian unit of Japan’s Suzuki Motor Corp. plans to launch the vehicle on September 3 and hopes it will double its sales in the segment, the people said, asking not to be identified discussing business plans. It will be the first new model to roll out of the company’s plant in Kharkhoda in the northern state of Haryana, from where it targets around 10,000 units a month when scaled fully, they said.

The launch comes at a critical juncture. Although still the nation’s largest carmaker by sales, the Suzuki unit’s hatchback-heavy lineup has helped give rivals — Mahindra & Mahindra Ltd., Hyundai Motor India Ltd. and Tata Motors Ltd. — a headstart as consumer preference shifted toward SUVs. That, together with shrinking small-car sales, has put Maruti’s goal of grabbing 50% of the domestic market, up from around 40% now, in doubt.

While the Grand Vitara has seen volumes plateau in recent months, the new SUV is positioned as a more mass-market version, the people said.

That would see the new mid-sized SUV retail through Maruti Suzuki’s Arena outlets, while the Grand Vitara is sold through the Nexa outlets meant for more premium-positioned cars.

Maruti Suzuki didn’t immediately respond to an emailed request for comments.

The new SUV will be only the second product from Suzuki globally in this category, underscoring India’s central role in the company’s growth strategy.

The company “is struggling to regain lost market share due to continued weakness in its mainstay mini and compact segments, despite a recovery in output and strengthening of its SUV product portfolio,” Tatsuo Yoshida, a senior autos analyst at Bloomberg Intelligence, wrote in a March report.

Accounting for 60% of Suzuki’s global sales, the Indian unit will play a critical role in the success of its parent’s fiscal 2026-31 medium-term plan, Yoshida said, adding that by further strengthening its lineup, particularly in SUVs, Maruti can capture expanding demand in rural areas to boost both sales volume and market share.