Maruti Suzuki Seeks Government Help as Small Car Sales Decline

India's entry-level car segment has sharply declined over the past few years. According to Maruti Suzuki, sales of cars priced below ₹5 lakh dropped from 9,34,538 units in FY16 to just 25,402 units in FY25. These cars now account for less than 30% of total passenger vehicle sales. The trend shows a gradual erosion of affordability in the small car market, which was once a stronghold in India’s auto sector.

Monthly Sales 

Maruti Suzuki reported that combined sales of its Alto and S-Presso models stood at 6,776 units in May 2025, down from 9,902 units in May 2024. Sales in the compact segment, which includes models like Baleno, Dzire, Swift, WagonR, Ignis, and Celerio, also fell to 61,502 units in May 2025 from 68,206 units a year earlier.

Maruti Suzuki’s Request for Support 

As per news reports, the regulatory changes have pushed up vehicle prices, affecting the segment that typically attracts buyers shifting from 2-wheelers to 4-wheelers. Maruti Suzuki has asked for government support to make small cars more accessible again, including incentives that could help offset the rising costs.

Small Cars Losing Share in the PV Market

The share of small cars in India’s passenger vehicle (PV) market has steadily declined over recent years. It stood at 47.4% in FY18 and has fallen each year since, dropping to 46% in FY19, 45.6% in FY21, and down to 27.7% by FY24.

Read More: India’s Car Market Grows 60% Since 2015, Set to Outpace China by 2030!

China’s Rare Earth Policies

On another note, the company stated that its production has not been immediately affected by China’s recent restrictions on rare earth magnet exports. Discussions are ongoing between the industry and government regarding the required certifications for imports.

Share Price Performance

As of 10:21 AM on June 3, 2025, Maruti Suzuki share price was trading at 12,249%, a 0.33% decrease, an 8.30% increase over the past 6 months and a 2.09% drop over the past year.

Conclusion

Maruti Suzuki exported 3,32,585 units in the last fiscal, marking a 17.5% rise from the previous year. It aims to export at least 4 lakh units in FY26. Key export markets include South Africa, Saudi Arabia, Chile, Japan, and Mexico.

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