Maruti Suzuki India is the largest car company in the country. It has more than 50% share in almost all segments like hatchback, MPV, SUV, and sedan. Even after this, the company is constantly trying to strengthen its portfolio.
The company has the largest share in small cars. Now according to the new report, the company is working on a new mild hybrid car. It will be a small car, which can be priced around Rs 5 lakh. This small electric EV can compete with vehicles like the Tata Tiago EV.
Powertrain and Engine
This new small car is likely to be given a mild-hybrid engine or flex-fuel engine in the Indian market. In its management plan, Suzuki can rapidly develop entry-segment products to suit the preferences of entry-level customers.
As per the plan, this entry-level car will have M-HEV (mild hybrid engine), CNG, and FFV (flex fuel vehicle) powertrains. It is worth noting that this is different from the low-cost EV that Maruti Suzuki is reportedly working on.
Decline in sales of small cars
Maruti Suzuki is currently facing a slowdown in sales of A-segment vehicles. The entry-level and small hatchback segments are witnessing a steady decline in sales, while the popularity of SUVs is increasing.
The increase in car prices is one of the main reasons for the decrease in their sales. Due to this, the sales of this segment are continuously declining. This is why the company can launch this car at an ex-showroom price of around Rs 5 lakh.
After the BS6 emission norms and the Kovid-19 pandemic, the income of buyers in this price category has not increased much. However, there is still a lot of potential in this segment, as many customers are upgrading from motorcycles.
Maruti Suzuki is coming up with several plans to make a vehicle at a low price. Currently, the Alto K10 is the company’s most affordable car, with a starting price of Rs 4.09 lakh (ex-showroom). The company also has the S-Presso, which is priced at Rs 4.27 lakh (ex-showroom).