Maruti Suzuki steadies growth path with GST relief, Victoris and safety push

For Maruti Suzuki, which continues to hold the pole position in the industry, the outlook is one of measured optimism. Paartho Banerjee, Head of Sales & Marketing, is clear: the company does not expect sudden double-digit surges, but a return to the historical growth trajectory of 6–7 per cent CAGR in the medium term. “Growth will come, but not overnight,” he said at a recent roundtable, urging comparisons to be drawn carefully given that festive calendars vary year to year. GST cuts and pricing strategyIf there has been one immediate catalyst, it is the GST revision. While the cess complicated dispatches of cars, Maruti was quick to act. It passed on the full GST benefit to customers — not just on new vehicles but also servicing and spares. “No other OEM has done that,” Banerjee emphasised, noting that enquiries have already risen by around 15 per cent since the cuts were announced. On dealer concerns, particularly around cess adjustments, Maruti is absorbing part of the impact and ensuring liquidity across the channel. With close to 50 days of stock at the start of the transition, the company believes it can meet festive demand without disruption. The strategy is pragmatic: use fiscal relief to build momentum, while keeping the dealer network stable. Also Read : Nexa turns 10: How Maruti Suzuki built a premium segment to retain customers Market share ambitionsCompetition in SUVs has put Maruti on the defensive in recent years. Once commanding over 50 per cent of the market, the company today hovers around the 40–42 per cent range. Banerjee, however, reiterates the long-term ambition: The endeavour is to get back to 50 per cent passenger vehicle market share, Banerjee stated, emphasising that the strategy is in place, and we are working towards it. That strategy now leans heavily on the newly launched Victoris, Maruti’s big bet in the midsize SUV space. Positioned between the Brezza and Grand Vitara, it gives the company a strong foothold in the segment dominated by Hyundai Creta and Kia Seltos. Offered with petrol, hybrid, and factory-fitted CNG options, Victoris is also being prepared for export to over 100 markets, reinforcing India’s role as Suzuki’s global hub. The expected market impact is significant: Maruti’s SUV share has already grown from under 9 per cent in FY21 to 28 per cent in FY25. With Victoris priced from ₹10.49 lakh and retailed through Arena outlets, the company is betting on mass reach without diluting premium aspirations. The brand share ambition is clear: use Victoris and upcoming launches to shore up SUV share and steadily edge back towards the 50 per cent PV market share milestone. Product strategy & fuel mixMaruti’s approach to technology is best described as agnostic. ICE, CNG, hybrid, and EV – all have a place in the portfolio, depending on customer need and infrastructure readiness. CNG has been a strong play, with Maruti consistently leading the factory-fitted CNG segment at a time when fuel economics push urban and semi-urban buyers towards lower running costs. Hybrids, while not scaling as fast as anticipated, remain integral to Maruti’s mid- and large-car offerings. EVs are on the horizon, with the company’s Gujarat plant lined up for production. Also Read : From Maruti 800 to e-Vitara, Suzuki’s ₹70,000 Cr India plan signals continuity Banerjee frames it simply: “As market leader, we cannot back only one technology. We must be present across all, and let customers decide what works for them.” Retail network and used carsMaruti’s distribution remains its strongest moat. Arena continues to be the mass-market face, with over 4,000 outlets, while Nexa has grown to nearly 700, including 200 new studio outlets in the past year. The two channels are not designed to be equal, but complementary. “Arena is for vibrancy and young customers, Nexa is about exclusivity and premium,” Banerjee explains. The used-car business under True Value is another quiet strength. Despite the rise of digital-first startups, Maruti’s trusted brand and after-sales ecosystem give it a significant advantage in the pre-owned space. “Trust is the differentiator,” Banerjee asserts, pointing to the continued strength of True Value. Safety and technologyMaruti has long been accused of lagging in safety. Even Chairman R.C. Bhargava has said in the past that regulations must reflect what the mass buyer can afford. But the ground has shifted. Customers today are willing to pay for safety, and Maruti has responded decisively. The carmaker has prioritized safety as one of the pillars of its future strategy. From FY24-25, it began standardising Electronic Stability Programme (ESP) across models and introducing six airbags as standard in 14 variants, covering nearly 97 per cent of sales. Advanced features like ADAS Level 2 have been rolled out, with Victoris becoming the first Maruti Suzuki model in India to carry the tech. Also Read : Maruti Suzuki Victoris scores 5 star crash test safety rating in Global NCAP Crash test results are reinforcing the message. The fourth generation Maruti Suzuki Dzire was the first sedan to achieve a 5-star Bharat NCAP rating, and the Victoris secured a 5-star rating in Global NCAP and Bharat NCAP too. It scored almost perfect in adult occupant protection and top marks in child occupant protection tests. Maruti Suzuki Victoris becomes the second vehicle from India’s largest carmaker to score a five star safety rating in Global NCAP Supporting these initiatives is a massive investment in R&D. The ₹3,800 crore Rohtak facility now conducts more than 50 crash tests per model, validating safety across platforms. Campaigns like Nexa Safety Shield and Arena Safety Shield extend this thinking by educating customers that safety is more than just airbags, it includes structural strength, braking systems, and driver-assist technologies. Banerjee describes it best, “We could have limited safety to premium variants, but we believe safety is paramount and must be offered to all customers, across the range.” Maruti’s playbook is less about dramatic pivots and more about quiet reinforcement. Use GST tailwinds to lift demand, stabilise dealers, pursue technology pluralism, expand retail reach, strengthen used cars, and elevate safety standards. Get insights into Upcoming Cars In India, Electric Vehicles, Upcoming Bikes in India and cutting-edge technology transforming the automotive landscape. First Published Date: 16 Sept 2025, 09:02 am IST
Source: hindustantimes.com