Fight For Lion's Share

Rivals have thrown down the gauntlet to Maruti. Will the market leader rise to the challenge and be able to race ahead?

- Rakshit Kumar and Yuthika Bhargava

Skariah K George, 52, bought his Maruti Suzuki WagonR back in 2014. For years, the resident of Thiruvalla has sworn by it because of the car's mileage, its stubborn reliability and the ease with which the service centre replaced parts without fuss.

Suffering from persistent back pain, WagonR’s upright seating and tallboy frame had been a blessing for him. The car had never once stranded the family on the road. “It never let us down,” his son Blesson Skariah recalls.

But when the time came to replace it, father’s loyalty and son’s aspirations pulled in different directions. Skariah wanted another WagonR. His 21-year-old son insisted on a sports utility vehicle (SUV). “Obviously Kia,” Blesson says, “they have futuristic designs.”

This tug-of-war between loyalty and aspiration is playing out across India’s passenger vehicle (PV) market. Maruti Suzuki India—Maruti—the undisputed leader for decades, is ceding ground to smaller rivals who once were blips in the rear-view mirror.

Between 2018-19 and 2024-25, Maruti’s market share fell by more than 10 percentage points—from 51.2% to 40.9%. The WagonR still rules Indian roads, giving Maruti an enviable edge.

Yet the hatchback segment that WagonR belongs to, has shrunk by over 23 percentage points in the PV market, from 46.9% in 2018-19 to 23.6% in 2024-25. Maruti now confronts the classic incumbent's dilemma: cling to the formula that made it king for decades or turn to newer battlefields where rivals are gaining ground?

The Cultural Shift

The first cracks appeared in the last decade as young, urban buyers began seeking something more aspirational. Car commercials reflected the shift. The dutiful son buying a Maruti 800 to please his parents gave way to a stylish couple in a Honda Brio, with Western music playing in the background. The cues were clear: buyers now wanted style and individuality.