Now, Maruti wants pole position in utility race

MUMBAI | NEW DELHI: The undisputed leader in India’s compact-car space is now gunning for a bigger prize – the pole position in India’s fast-growing and high-margin utility-vehicles segment.

Maruti SuzukiBSE 1.16 %, the biggest success story for Japanese carmaker Suzuki Motor Corp beyond its home base, is likely to have a portfolio of more than half a dozen utility vehicles and crossovers with three new offerings lined up in the next four years.

According to several people in the know, Maruti Suzuki is likely to bring in a new cross-over utility vehicle, a derivative of its Ertiga platform internally codenamed YHB derivative. Apart from that, there is scheduled for launch a three-row Wagon R MPV, followed by a premium SUV positioned above the Brezza.

Along with Gypsy, Ertiga, Brezza, S Cross, and Ignis, the portfolio of cross-over and utility vehicles will expand to eight, spanning the 5 lakh to Rs 18 lakh price points. The Ertiga and S-Cross themselves are expected to be refreshed and the next generation versions are likely to sport Suzuki's new 1.5 litre diesel engine, informed industry sources. Also likely is a petrol version of SUV Brezza, which should help it boost sales numbers further.

"The only place where we don’t have a product is a bigger SUV, and that is coming. I am not sure of the exact date, but probably by the end of 2019," Maruti Suzuki Chairman R C Bhargava had told ET in a recent interview.

The derivative on YHB or Ertiga Platform is likely to be a three-row utility vehicle, with sporty cues along the lines of Honda BRV, which will be followed by a premium SUV in the Rs 12 lakh to Rs 18 lakh bracket. The latter will be pitted against Tata Hexa and Mahindra XUV, which would be the company's most ambitious attempt in developing a car in the Rs 10 lakh-plus segment since the introduction of cross-over utility vehicle S-Cross and sedan Kizashi. Both received lukewarm responses locally.

Gaurav Vangaal, senior analyst at IHS Markit, says the utility vehicle segment is entering into a “golden era” and this will be strongly led by Maruti Suzuki.

“We have already seen what Maruti can do in the sub-4 metre SUV space. Going by how Maruti has been able to gain acceptability in the premium end of the market or in the mid-size sedan segment of Baleno and Ciaz, it is almost a given that Maruti will be able to generate a lot of interest in the bigger or premium SUV and MPV segments,” said Vangaal.

According to IHS Markit, the utility vehicle (SUV + MPV) segment should show a four-fold jump in production from 550,000 units in CY2011 to over 2 million units in CY2021.

“Market players understand it well and you may see a lot of action driving out of the Maruti Suzuki, Hyundai, and Renault stables,” added Vangaal.

Maruti Suzuki accounted for one out of every two passenger vehicles sold in the Indian market in the first six months of the fiscal year. The Vitara Brezza has given Maruti Suzuki runaway success in the utility vehicle segment. Maruti Suzuki holds a share of 28.24% in that market, ahead of Mahindra & Mahindra (M&M) that has a share of 26.04%.

UVs have helped Maruti’s market share cross the significant milestone of 50%. At the end of September, Maruti Suzuki’s market share stood at 50.4% in the passenger vehicle space, whereas its closest rivals Hyundai Motor India and Mahindra & Mahindra (M&M) had shares of 16.2% and 7.4%, respectively.