Maruti Suzuki Plans To Launch New Entry Car to Target First-Time Buyers

New Delhi: Maruti Suzuki India, which is the country's number one car company, is planning to introduce a new entry-level car, specifically designed for first-time buyers, to re-establish its foothold in the small car segment within the country.

What will the model offer?

The company said that the model will be specifically designed for India and under its "multi-pathway strategy" will offer a variety of powertrain options, including mild-hybrid, flex-fuel, and CNG, in line with its multi-pathway strategy.

What is the reason to introduce this car?

The development comes as the company  sharpens its focus on affordability and accessibility, particularly for customers upgrading from two-wheelers. 

Maruti is focusing to attract a larger share of first-time buyers by combining lower acquisition costs with improved fuel efficiency and alternative fuel options.

Has GST 2.0 reduced the price?

The plan has already started showing positive signs after the implementation of GST 2.0 in September 2025.

Under GST 2.0, the tax rate on cars have reduced from 28 per cent to 18 per cent, which has helped improve affordability in the entry-level segment and revived buyer interest.

According to reports, this has resulted in the share of first-time buyers, which has increased to 48 per cent in the September-December 2025 period, from around 40 per cent in April-August.

This showed that the small segment car demand has improved among budget-conscious consumers, according to an investor presentation shared by the company on Tuesday.

What was the sales?

Maruti Suzuki reported total sales of 2.20 million units in the first 11 months (April-February) of FY26, up 7.6 per cent year-on-year from 2.04 million units in the same period last year.

Domestic sales (including PV, LCV, and OEM supplies) grew 3.2 per cent to 1.80 million units, while passenger vehicle sales rose 2.9 per cent to 1.66 million units. Within this, the utility vehicle segment remained the key growth driver, rising 4.6 per cent to 689,631 units.

In contrast, the mini segment declined 11.9 per cent to 100,550 units, reflecting continued weakness in entry-level demand. The compact segment grew 4.6 per cent to 736,313 units, supported by strong volumes of models such as WagonR, Swift, Dzire, and Baleno. The mid-size sedan segment saw a sharp decline of 74.4 per cent, highlighting the ongoing shift toward SUVs.