Maruti Suzuki's market share falls to 13-year low
What's the story
Maruti Suzuki, India's largest car manufacturer, has witnessed a massive drop in its market share. The company's grip on the passenger vehicle segment has weakened to a 13-year low, with its share falling to 39.26% in FY26. This is Maruti's lowest market share since FY13 and a decline of nearly 12% points since FY20, according to data from the Society of Indian Automobile Manufacturers (SIAM).
Continuous decline
Third consecutive year of decline
This is the third consecutive year of declining market share for Maruti Suzuki. The company, which once held nearly half of India's car market, has seen its dominance erode due to stiff competition and changing consumer preferences. Despite launching new models like the Jimny and Victoris in the fast-growing SUV segment over the past three-and-a-half years, Maruti's overall market share continues to decline.
Market performance
Less than 25% share in utility vehicle segment
The utility vehicle segment, which includes SUVs, now makes up 67% of India's passenger vehicle market. However, Maruti Suzuki's share in this category is less than 25%. This highlights the company's relative weakness in a segment that has been driving industry growth. Despite dominating sub-4 meter cars like Wagon R, Swift and Baleno with a 67% share, growth in this segment has slowed sharply to under 2% in FY26.
Rising competition
Competitors gaining ground rapidly
Maruti Suzuki's market share decline has coincided with sharp gains by competitors. Mahindra & Mahindra, riding the SUV wave, more than doubled its market share in five years to 14.21% by FY26. Tata Motors is not far behind with a share of 13%. Gaurav Vangaal of S&P Global Mobility said Maruti's decline reflects structural shifts and noted that the company has no diesel portfolio despite diesel still accounting for about 20% of the market.
Partnership outcomes
Mixed results from Toyota partnership
Maruti Suzuki's partnership with Toyota has yielded mixed results. The Grand Vitara, which is also sold as the Urban Cruiser Hyryder under the Toyota brand, sometimes outsells its Maruti counterpart. This suggests possible cannibalization within the market. In the premium MPV space, Maruti Suzuki Invicto sells 300-400 units a month while Toyota Innova Hycross clocks 9,000-11,000 units highlighting brand perception gaps between these two companies' products.
Future goals
Ambitious target for FY31
Despite the current decline, Maruti Suzuki has not revised its FY31 target of regaining a 50% market share. Achieving this would require the company to recover nearly the same share it lost over the past seven years in just five years. An email sent to Maruti Suzuki seeking clarity on its outlook and whether the FY31 target remains unchanged did not receive a response at press time.