Maruti Suzuki , which is witnessing surging demand for its range of SUVs and MPVs, has ramped up production to meet said demand. The carmaker manufactured a total of 2,00,767 vehicles in January 2024, an increase of 13 percent year on year (January 2023: 1,78,429 units). Of its five vehicle sub-segments, production of utility vehicles (UVs) saw the highest year-on-year (YoY) growth – the 58,226 units are a 100 percent increase over January 2023’s 29,097 units. Maruti currently has eight models in its UV portfolio comprising the Brezza , Grand Vitara , Fronx , Jimny , XL6, Ertiga and the new Invicto. In a significant development, Maruti Suzuki, India's largest car manufacturer, has doubled its production of Sports Utility Vehicles (SUVs) and Multi-Purpose Vehicles (MPVs) in January 2024. Following the launch of the petrol-engined Fronx in end-April 2023 and the CNG Fronx in July 2023, overall UV production saw a marked increase in the subsequent months (see table below) following an increase in demand for other popular SUVs and the Ertiga. The Fronx has since surpassed sales of 1,00,000 units, barely 10 months after launch. It's a similar story with the Brezza, which wintnessed an increase in demand post the launch of the CNG variant in March 2023; the last 1,00,000 units were sold in just the last eight months.
Growing Demand for SUVs and MPVs
Because of flexibility, comfort, and value, SUVs and MPVs have been increasingly popular among Indian buyers over the years. Due to reasons such shifting customer tastes, increasing disposable incomes, and the need for cars that can be used in both urban and rural settings, these categories have seen consistent growth. Therefore, automakers such as Maruti Suzuki are increasing their output in order to fulfill the growing demand for MPVs and SUVs.
Maruti Suzuki's Response: Doubling Production Capacity
Recognizing the shifting market dynamics, Maruti Suzuki has proactively increased its production capacity for SUVs and MPVs. The decision to double production in the January 2024 reflects the company's commitment to be catering to the evolving needs of the Indian consumers and also maintaining its leadership position in the competitive automotive market.
Expansion of Manufacturing Infrastructure: Investment and Upgrades
Maruti Suzuki's production surge is supported by investments in manufacturing infrastructure and technology upgrades. The company has been optimized its production processes to enhance efficiency and the quality also across its manufacturing facilities.
Projected Growth in SUV and MPV Segments
Industry analysts forecast continued growth in the SUV and MPV segments, driven by urbanization, infrastructure development, and changing lifestyles.
Conclusion: Driving Growth through Increased Production
The 10-month cumulative sales of Maruti Suzuki’s SUVs and MPVs reflect their demand: 5,22,626 units, up 77 percent YoY (April 2022-January 2023: 2,95,525 units). This translates to an additional 2,27,101 UVs being sold compared to the previous year, with April 2023-January 2024 UV sales contributing 36.12 percent to the company’s total PV sales of 1.44 million units in the first 10 months of FY2024. Sustained demand for its SUVs and MPVs, particularly the new Nexa models, means that the UV share is a third of total passenger vehicles, helping buffer the 42 percent decline in the sales of the Alto and S-Presso in the past 10 months.