Maruti Suzuki seeks policy support as small car sales continue declining
Maruti Suzuki India has called for government intervention to support the struggling small car segment, which continues to lose ground in the Indian passenger vehicle market. Citing affordability challenges and rising costs due to regulatory changes, the automaker emphasised the need for incentives to help budget-conscious consumers transition from two-wheelers to entry-level cars.
Over the past several years, the share of small cars in India’s PV market has steadily declined—from 47.4% in FY18 to just 27.7% in FY24. The downturn is particularly evident in the entry-level category (cars priced under Rs. 5 lakh), where volumes have plummeted from 9.34 lakh units in FY16 to a mere 25,402 units in FY25.
Sales of Maruti’s popular entry-level models like the Alto and S-Presso fell to 6776 units in May 2025, compared to 9902 units in the same month last year. Even compact cars such as the Baleno, Swift and WagonR saw a dip in sales, dropping to 61,502 units from 68,206 units year-on-year.
Speaking at a virtual press conference, Maruti Suzuki’s Senior Executive Officer for Marketing and Sales, Partho Banerjee, highlighted the challenges faced by small car buyers, stating that increased compliance costs have made these vehicles less accessible to consumers hoping to upgrade from two-wheelers. “To fuel growth in the auto industry, it’s crucial to identify barriers and widen the customer base,” he said, urging for policy support to ease the financial burden on prospective buyers.
Despite the domestic market challenges, Maruti Suzuki continues to expand globally. The company aims to export 4 lakh units in FY26—a 20% increase from FY25, when it exported a record 3,32,585 units. The automaker currently exports to around 100 countries, with key markets including Africa, Latin America, Southeast Asia and Japan. Models like the Fronx and Jimny have contributed significantly to export growth.
Maruti Suzuki’s Senior Executive Officer for Corporate Affairs, Rahul Bharti, addressed concerns over supply chain disruptions linked to China’s rare earth magnet export restrictions. While production remains unaffected for now, Bharti noted that the industry is coordinating with the Indian government to navigate China’s new end-user certification requirements.
Looking ahead, the company anticipates further export growth with the launch of its electric vehicle portfolio. Maruti Suzuki currently holds a 43% share in India’s total vehicle exports and is optimistic about reaching the 50% milestone.
