After the basis of the Indian passenger vehicles market, small cars quickly slip in the shade. Marauti Suzuki India, the largest car in the country, raised anxiety about this sustainable decline, calling on government incentives to restore interest in the segment that once exposed the India’s car boom.
Entry-level vehicles at the price below 5 varnishes observed a steep drop in 9,34,538 units in 16 to 25 402 units in 225. Even Maruta Suzuki, historically dominated in this segment, recorded the drop in the sales of their alto models and S-Presso to 6 776 units in May 2025. Compact models such as Baleno, Celerio, Dzire, Ignis, Swift and Wagonr, also registered a decrease by selling 61,502 against 68 206 in May 2024.
Partho Banerjee, Senior Executive Director (Marketing and Selling) in Maruti Suzuki India, attributed to the decline to increase the normative costs. “So, where the government must understand that if they want to nourish the growth of the car industry, they need to understand where the problem is and how to increase the size of the pie (a small sale of cars),” he said. He added: “Some incentives are required for a client who is unable to afford, can come and can go to a four -wheeled car from a two -wheeled car.”
Small cars accounted for 47.4% of the total car market (PV) in FY18, slightly dropping to 46% in 1919 and reached a maximum of 46.5% in fy20. Since then, the share has invariably declined – 45.6% in 21 years, 37.5% in FY22, 34.4% in FY23 and 27.7% in FY24.
On other fronts, the car manufacturer noted that he had no direct impact on China’s new export control on rare land magnets. Rahul Bharti, Senior Executive Director (Corporate Affairs), said the industry was working with the government for the necessary final users certificates. “Thus, this process continues and the industry is discussed with the government,” he said.
China controls more than 90% of global power to process these magnets required for sectors such as cars, appliances and net energy.
During the export of Maruta Suzuki, a 20% increase in this financial year was aimed at selling 4 units compared to 3.32,585 units last year. “Our goal this year (FY26) is at least four units, which provides for at least 20 percent in 225,” Bharti said. He stressed that their exports covers nearly 100 countries with high demand from Africa, Latin America, Southeast Asia and now Japan, which quickly became the second largest export point thanks to Fronx and Jimny models.
“We believe that this year our share will increase. We are already 43 percent, and the gold assessment of 50 percent is close,” Bharti added.
In FY25, Fronx, Jimny, Baleno, Swift and Dzire headed the export of Maruta Suzuki with South Africa, Saudi Arabia, Chile, Japan and Mexico among the main places.
(With PTI’s introductions)
