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Hisashi Takeuchi, Managing Director and CEO, Maruti Suzuki India Ltd, at the launch of the ‘Victoris’
Maruti Suzuki India (MSIL), the country’s largest passenger vehicle (PV) manufacturer, stated on Wednesday that it will continue to develop small cars for the masses. However, the company is currently focusing on SUVs because they now account for 55 per cent of overall vehicle sales.
“We believe small cars will continue in India, and we will keep introducing them to this market, including new models. This is the foundation of our business. However, since 55 per cent of the market is now SUVs, we cannot ignore this segment. To maintain our leadership position, we must also be number one in the SUV market,” said Hisashi Takeuchi, MSIL’s Managing Director and Chief Executive Officer, to reporters on the sidelines of a new product launch.
When asked about bringing “K cars”— which are smaller and attract lower taxes — to India, he said the company could introduce them if there was a new strategic direction. However, he added that they would not be “economical and affordable” due to new emission and safety regulations.
Takeuchi said, “To make K cars very popular in India, we have to carry out serious cost-reduction activities so that they are truly affordable for people.”
Small car market
Recently, RC Bhargava, MSIL Chairman, said at the company’s annual general meeting that the small car market will revive in the next one-two years. He explained that a large segment of people at the lower end of the market are still two-wheeler owners who want a safer and more convenient mode of transportation.
“I think there is no question that this country cannot just get by with larger, more luxurious vehicles. People in this country want things that are more practical,” he said.
Referring to Japan’s introduction of K cars in the 1950s, Bhargava said, “India needs to consider something similar.” He noted that K cars are relatively small, with a maximum length of 3.4 metres and a maximum width of 1.48 metres. Their engine size is limited to 660cc. Although they have lower safety regulations, they are subject to lower taxes compared to larger cars.
New launch
Meanwhile, MSIL launched an all-new SUV, the Victoris, which will be sold through its Arena channel. The company did not announce the price, stating that it would be declared once they have a clearer picture of the new GST rates.
Published on September 3, 2025
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