Maruti Suzuki India is focusing on maintaining the relevance of premium hatchbacks despite the strengthening dominance of SUVs in the passenger vehicle market. This segment has shown faster growth than the entire industry over the first five months of the current fiscal year.
According to estimates, the premium hatchback industry currently accounts for about 50,000 units monthly, with Maruti Suzuki controlling approximately 70 percent of this segment, stated Partho Banerjee, Senior Executive Director of Marketing and Sales at Maruti Suzuki India.
Banerjee noted that sales of Maruti's premium hatchbacks grew by 28 percent from April to August, while the overall industry growth was 17 percent. The company plans to strengthen its position with the updated Baleno model, which will be equipped with a range of new features, including advanced driver-assistance systems (ADAS).
The company forecasts that the total Indian passenger vehicle market will reach 6.1–6.3 million units by 2030. By that time, SUVs are expected to account for 62–63 percent of the market, leaving approximately 37–38 percent for hatchbacks and Multi-Purpose Vehicles (MPVs).
Banerjee stated that, in Maruti's view, the volume of this sector will reach 6.3 million, adding that Maruti sees significant potential in segments outside of SUVs. The company estimates the corresponding market size to be around 2.5 million units by 2030, with its own business in this area potentially doubling from the current approximately 600,000 units to 1.2 million.
Currently, Maruti sells about 16,000–16,500 units of the Baleno per month, while the Fronx crossover sells approximately 17,000–18,000 units. Both models are produced on the same production line, and the company regulates output based on the waiting periods for these two models.
The updated Baleno was unveiled over the weekend, starting at a price of 6.1 lakh rupees. The updated Baleno will also feature human recognition ADAS, which, according to Banerjee, is a novelty for the premium hatchback segment. The company positions the new features around the so-called 'cosmopolitan' customer—consumers who seek products reflecting their lifestyle and personality.
Initial buyers now constitute about 46 percent of Baleno customers, and Maruti is also observing growing interest from entrepreneurs and startup owners. Maruti Suzuki has opened pre-orders for the new Baleno at a price of 11,000 rupees.