With Maruti Ciaz out of the game, total mid-size sedan market to fall further

With Maruti Suzuki India Ltd’s (MSIL) mid-size sedan ‘Ciaz’ getting discontinued from the market, the total gross sales of the section goes to decline further from the already dwindling gross sales.

The total wholesales (dispatches to sellers) of the mid-size sedan market declined to 51,171 items in April to February 2024-25, a year-on-year (y-o-y) decline of 30 per cent as in contrast with 73,108 items in the identical interval in the earlier fiscal yr.

In phrases of manufacturing additionally, it declined to 1,90,517 items throughout the interval as in opposition to 2,18,528 items in April-February 2023-24, the newest month-to-month information shared by Society of Indian Car Producers (SIAM) indicated.

The dispatches in February although had elevated marginally y-o-y to 5,030 items as in contrast with 4,974 items in February 2024, primarily due to Maruti Ciaz, which the analysts stated was due to the producer clearing the older shares.

The wholesale of Ciaz elevated to 1,097 items in February as in contrast with 481 in February 2024. Different rivals like Honda Metropolis and Hyundai’s Verna gross sales declined throughout the month. For example, Honda Metropolis’s wholesales declined to 889 items as in contrast with 1,184 items in February final yr, and Hyundai Verna’s dispatches declined to 1,207 items in February as in contrast with 1,678 items in the corresponding month final yr. Aside from these two, Volkswagen’s Virtus which additionally competes in the market proven development throughout the month to 1,837 items as in contrast with 1,631 items in February 2024.

Whereas, MSIL has not formally confirmed about the discontinuation of the Ciaz, sources stated the drop in gross sales over the final couple of years plus competitors from new comers like Skoda Slavia and Volkswagen Virtus which led the firm to suppose it was a proper determination. Launched in 2014 as a alternative for the SX4, MSIL had final up to date the mannequin in 2018.

Sources stated another excuse may very well be that the new Dzire (compact sedan) has extra options together with a sunroof, and five-star score for security (for grownup and four-star little one occupant), six airbags as normal and ADAS (Superior Driver-Help Techniques), in contrast to the Ciaz in the present portfolio, so there may very well be a cannibalisation too.

“Though Maruti Ciaz’s gross sales have been already low there could be an erosion of the share of the mid-size sedan in the general passenger automobiles gross sales in the coming months,” a Delhi-based market professional instructed businessline.

The Maruti Suzuki Ciaz was additionally half of most of the authorities fleet (utilized by Ministers/ Bureaucrats and Defence) automobiles in the nation. The sedan section’s demand is already down as a result of of customers altering their preferences in direction of the sports activities utility automobiles (SUVs), the analysts stated.

For example, the passenger automobiles’ wholesales declined by 4.3 per cent y-o-y to 1,10,966 items in February as in contrast with 1,15,937 items in February final yr, whereas that of utility automobiles grew by 9.1 per cent y-o-y to 2,08,795 items throughout the month in opposition to 1,91,435 items in February 2024, the SIAM information indicated.