Why Leaders Fail

The promise of the future is frequently overshadowed by the weight of legacy. History demonstrates that great leaders and businesses fail because they cling too tightly to their past achievements, thus blurring their vision and ambition for the future.

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After 40 years as India's top passenger-car brand, Maruti Suzuki India is currently at a similar crossroads. Although it still holds 40% of the overall passenger-vehicle market in India, Maruti’s share of the sports utility vehicle (SUV)/multipurpose vehicle sales in 2024-25 was about 20% indicating serious room for innovation.

Shifting Gears

For a company with the unshakeable legacy of 'affordable, reliable cars' Maruti needs to ask how its products can more closely align with the morphing Indian auto market, and more importantly, with the new age Indian consumer.

In the vast hinterlands of rural and semi-urban India, Maruti continues to be desired because of its no-frills product, affordability, fuel efficiency, but most of all, because of its vast service network with over 5,000 service touch points across the country.

However, with higher-than-average growth rates in urban India, especially among millennial and middle-income households, the battlefield for car ownership has changed, and how:

* Policy tailwinds: The September 2025 GST overhaul reduced taxes on SUVs to 40%, maintained EVs at a favourable 5%, and reduced taxes on small cars from 28% to 18%. By lowering sticker prices by about 12%, this could increase demand and alter the economics of SUV and EV ownership, perhaps encouraging Maruti owners to migrate upmarket.

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