Maruti Suzuki India is set to expand its sports utility vehicle (SUV) portfolio with a second mid-sized model, people familiar with the plan said, as the nation’s top carmaker scrambles to counter slowing demand for its bread-and-butter small cars.
The Indian unit of Japan’s Suzuki plans to launch the vehicle on Sept. 3 and hopes it will double its sales in the segment, the people said, asking not to be identified discussing business plans. It will be the first new model to roll out of the company’s plant in Kharkhoda in the northern state of Haryana, from where it targets around 10,000 units a month when scaled fully, they said.
The launch comes at a critical juncture. Although still the nation’s largest carmaker by sales, the Suzuki unit’s hatchback-heavy lineup has helped give rivals — Mahindra & Mahindra, Hyundai Motor India and Tata Motors — a headstart as consumer preference shifted toward SUVs. That, together with shrinking small-car sales, has put Maruti’s goal of grabbing 50% of the domestic market, up from around 40% now, in doubt.
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