Maruti’s revenue share from mini car segment drops

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Small is no more beautiful for the largest India based smart car manufacturer Maruti Suzuki. The manufacturer’s revenue growth is driven by the mid-size and super compact cars for the past two years. In fact, this growth has outpaced that of the mini car segment.

The mini car segment including the vehicles such as Alto and Wagon R accounts for about 18.7 percent of the overall revenue of Maruti in the first half of this year. This is a sharp dip in the revenue contributed by this segment from the 22.6 percent in the last fiscal year. On the other hand, the super compact segment that includes models such as Dzire Tour and the mid-size segment with the models such as Ciaz have grown steadily in terms of revenues.

The share of revenues contributed by the super compact segment of increased from 1 percent to 2.9 percent while that of the mid-size segment increased from 0.6 percent to 5.6 percent.

The chairman of Maruti, RC Bhargava stated that the trend is nothing but a reflection of the changes in the market. This trend is a great deal for the company that introduced the first small, city car in India in 1983. Currently, the mini segment’s share of the revenues is not only shrinking but also less than 15 percent of the overall profits of the auto manufacturer. These details were revealed by a recent research report by HSBC Global.

Maruti has been focusing on the launch of Ciaz, S Cross, Ertiga and Baleno lately. This suggests that the manufacturer is focusing on the high end cars right now. The executive stated that they will offer what their customers want and that they will not ignore the small cars. It was claimed that there are many first time buyers who are looking to upgrade their bikes to mini cars. The experts believe that the manufacturer is well positioned in the market in order to retain its huge customer base.