Maruti Suzuki battles Indian market share loss after Osamu Suzuki's death

Maruti Suzuki faces a critical transition period following the death of its influential former chairman and CEO, Osamu Suzuki while grappling with declining market share in India amid shifting consumer preferences and intensifying competition from South Korean manufacturers.

Osamu Suzuki, who led Suzuki Motor for five decades and shaped its dominant presence in India, passed away at 94 on December 25, 2024. Maruti Suzuki, which began as a joint venture between Maruti Udyog and Suzuki before becoming a Suzuki subsidiary in 2007 after the Indian government's divestment, has maintained its leadership in India's automotive sector for four decades. The Indian market's significance is evident, accounting for nearly half of Suzuki's global car sales in the fiscal year ending March 2024.

However, 2024 marked a significant shift as the Tata Punch emerged as India's best-selling model with approximately 202,000 units sold, though Maruti Suzuki retained three positions in the top five sales rankings. Top Gear attributes the Tata Punch's success to its versatile lineup, including petrol, CNG, and electric variants, effectively addressing Indian consumers' growing preference for SUVs.

According to Nikkei, Suzuki aims to regain its competitive advantage by focusing on compact electric vehicle (EV) development that is aligned with Indian government policies. However, industry observers note that Osamu Suzuki's death may impact the company's ability to navigate the Indian policy landscape, given his strong relationships with local policymakers. These challenges have led Suzuki to revise its global sales forecast for fiscal 2024, reducing expected figures by 9,000 units to 3.24 million units.

While EVs represented only 2% of India's automotive market in 2023, the segment demonstrated robust growth with a 91% year-over-year increase in sales. In response, Suzuki is developing compact EVs and offering contract manufacturing services for other automakers' electric vehicles within India, though the success of these initiatives remains to be seen.

Nikkei reports that Suzuki plans to unveil a new mid-term strategy in February 2025. This strategy will include plans for an expanded SUV lineup and the launch of new electric vehicles.

Source: India Today, January 2024