India’s largest automaker by sales has lagged behind peers, Tata Motors, Maruti, and Hyundai, in the SUV market, which is seeing a significant rise in the country
Maruti Suzuki India is reportedly looking to launch a new mid-sized model, in a bid to expand its market share in the SUV category, as it experiences a slowdown in its traditionally strong small-car segment.
According to a report by Bloomberg, the country’s largest carmaker by sales plans to unveil the vehicle on September 3. The upcoming SUV will be the first model to roll out of Maruti’s Kharkhoda plant in Haryana, with initial production targets set at around 10,000 units per month once operations scale fully.
Maruti hopes that the vehicle will double its sales in the segment, the report added.
The vehicle will be positioned as a more accessible, mass-market option compared to the Grand Vitara. It will be sold through the company’s Arena outlets, while the premium Grand Vitara continues to be sold through Nexa showrooms.
This launch comes at a critical time as rivals like Mahindra & Mahindra, Hyundai, and Tata Motors have capitalized on India’s SUV boom.
Maruti’s dominance, once supported by its compact models, has slipped to around 40% of the total market share. It has long held a target of 50% market share.
Globally, this will be only Suzuki’s second model in the category, underscoring India’s importance to its growth plans.
In a separate news, the Supreme Court has granted interim relief in the ‘end-of-life’ vehicle matter, ordering that no coercive measures be taken against owners of older vehicles in the Delhi-NCR region.
Retail Sentiment Improves
Retail sentiment on Stocktwits shifted to ‘neutral’ from ‘bearish’ a day earlier.
Bullish Call On Maruti
SEBI-registered analyst Front Wave Research is betting on Maruti Suzuki as a ‘Momentum Buy’ at ₹12,645. They expect it to rally till ₹14,541 over the next 3 months, driven by festive demand recovery as well as its solid product mix and rural reach.
Maruti’s shares were trading 0.58% lower at ₹12,765 in early trade on Wednesday, having ended 2.1% higher in the previous session.
The stock has gained 18.3% year-to-date (YTD).
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