Hey friends, you must know that at one time, small cars used to rule in India. In FY18, the share of small cars in the overall passenger vehicle market was 47.4%. If we calculate this percentage in FY24, then this share has fallen from 47.4% to 27.7%.
This decline is being seen continuously in the Indian market; the biggest reason for this is affordability. Maruti Suzuki, everyone knows that it is the country's largest small car manufacturer.
After such a huge decline, this company has now demanded incentives from the government so that the company can boost the falling sales of this segment.
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Maruti Suzuki’s Sales of Entry-Level Cars Were Down From FY16 to FY25.
We all know that there was a time in India when an average car was available for less than ₹5 lakh, and at that time, the demand for cars was also high due to the affordability of the cars.
If we look at FY16, i.e., 8 or 10 years ago, the sales of such cars were around 9.3 lakh units. But by FY25, it has shrunk to 25,402 units. This clearly shows that the one that once had a hold on the entire market, now does not even have 30% of the overall PV market.
The numbers for May also justify this concern very well. The sales of models like Alto and S-Presso have now shrunk to just 6,776 units, while last year in the same month it was 9,902 units.
The compact segment is also lagging, which includes models like Baleno, Celerio, Dzire, Ignis, Swift, and WagonR, with sales falling to 61,502 units in May 2025 from 68,206 units in May 2024.
Entry-Level Cars Becoming Expensive Makes Shift From Two-Wheelers Difficult.
Maruti Suzuki Senior Executive Officer (Marketing & Sales) Partho Banerjee said in a virtual press conference that the prices of small cars have increased due to the new regulations. This is the reason that buyers upgrading from two-wheelers to four-wheelers have been significantly impacted.
He also said, “If the government wants growth in the auto industry, the govt. will have to understand where the problems are coming from and how the small car segment can be expanded.” According to PTI, he also suggested that there should be some financial incentives to bridge the affordability gap.
Historical Data of Small Car Sales Market Share.
The market share of the small car segment was 47.4% in FY18, which came down to 46% in FY19. There was a slight bounce back to 46.5% in FY20, but thereafter, there has been a continuous decline:
- FY21: 45.6%
- FY22: 37.5%
- FY23: 34.4%
- FY24: 27.7%
Looking at this data, it is clear that the once-dominating segment has now become marginal.
Impact of China’s Export Restrictions on Rare Earth Magnets on Maruti Suzuki Car Sales Down?
Maruti Suzuki’s Senior Executive Officer (Corporate Affairs), Rahul Bharti, clarified that till now, there has been no effect of China’s rare earth magnet export restrictions on car production. China has demanded an end-user certificate approved by the Indian and Chinese governments.
Bharti says that this process is still ongoing and the industry is engaged in discussions with the government on this issue.” These magnets are used in many sectors, like automobile, home appliances, and clean energy, and China has 90% global processing capacity.
Record Growth in Exports, FY26 Target 4 Lakh Units.
In a separate conversation, Rahul Bharti has also clarified that the company Maruti Suzuki is planning to export at least 4 lakh units in FY26, which shows 20% growth compared to FY25.
He says that Maruti Suzuki’s exports have diversified to 100 countries. Africa, Latin America, and Southeast Asia are its key export markets.
Another special thing that has come to light is that Maruti has now also entered the Japanese market, with only two models, the Francox and On. The strength of the Jimny, Japan, has become Maruti’s second-largest export destination.
Export Share Can Increase After EV Launch.
Rahul Bharti also highlighted that the electric vehicle (EV) is yet to be launched, which will double or boost the export numbers of Maruti Suzuki. Currently, the company’s export market share is only 43%, but he is confidently saying that the 50% golden mark is not far now.
Maruti exported a record 3,32,585 units in FY25, which was 17.5% more than FY24 (FY24 export = 2,83,067 units). The top exported models are – Fronx, Jimny, Baleno, Swift, and Dzire. Top export destinations include South Africa, Saudi Arabia, Chile, Japan, and Mexico.
Aashrit Tiwari is an experienced automobile content creator with over 2 years of dedicated writing in the cars niche. His passion for cars stems from early exposure to high-end vehicles at home, translating into deep hands-on knowledge and real-world insight. At Accelon Motors, he shares automobile & cars news, expert reviews, latest updates, and analysis trusted by readers across India. His consistent research and on-ground experience make him a credible voice in the automotive blogging space.