Return of the small car to even draw rivals: Maruti’s Bhargava

years, including Hyundai’s Santro and Eon, and Tata Motors’ Nano. Newer entrants completely skipped this segment in the face of rising consumer appetite for SUVs, which also tend to accrue better margins for manufacturers.

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Overall, Maruti Suzuki expects sales of all cars taxed at 18% to grow faster than those taxed at 40%. This includes SUVs shorter than four metres, including Maruti Suzuki's Brezza, Hyundai's Venue and Tata Motors’ Nexon. But these tend to cost upwards of ₹8-10 lakh versus the ₹5-8 lakh segment where Maruti Suzuki is the undisputed leader with models like the Alto, Celerio, S-Presso and Wagon-R.

Between 22 September and 31 October, small cars accounted for 20.5% of Maruti Suzuki's total sales, up from 16.7% before the tax cuts.