For many years, Maruti Suzuki remained the top player in India’s car market, but the company is now facing growing pressure from rivals. In FY26, Maruti Suzuki’s market share dropped to 39.26%, marking its lowest level in the last 13 years. The company, which once controlled nearly half of the country’s passenger vehicle market, has now recorded a decline for the third consecutive year. Increasing competition from other automakers, changing customer preferences, and rising demand for SUVs and electric vehicles are seen as some of the major reasons behind this slowdown. Despite the fall, Maruti Suzuki continues to remain India’s largest car manufacturer.
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Maruti Suzuki Losts 12% share since FY20
According to auto industry data, Maruti Suzuki has lost nearly 12% market share since FY20, highlighting the growing challenges for the company in India’s fast-changing car market. The decline comes at a time when India has become the world’s third-largest automobile market and competition among carmakers is stronger than ever. One major reason behind the slowdown is the rising popularity of SUVs. SUVs now account for nearly 67% of the total passenger vehicle market, but Maruti Suzuki holds less than 25% share in this segment. Although the company introduced models like Jimny and Grand Vitara, they failed to create a major impact against strong rivals.
Maruti Suzuki continues to depend heavily on its small car portfolio, including popular models like WagonR, Swift, and Baleno. The company currently holds around 67% market share in the small car segment, showing its strong position in this category. However, the growth of small cars has slowed significantly in FY26, with the segment expanding by less than 2%. In comparison, the SUV segment recorded much faster growth of around 11%, reflecting changing customer preferences in the Indian automobile market. As more buyers shift towards SUVs, Maruti Suzuki’s strong reliance on small cars is becoming a major challenge for the company’s future growth and overall market performance.
Competition in the Indian Market
Competition in India’s automobile market has increased rapidly, with rival companies strengthening their position through strong SUV sales. Mahindra has significantly expanded its presence in the market, raising its market share to 14.21% with the help of popular SUV models. Tata Motors is also close behind with around 13% market share. Vehicles such as the Mahindra Thar, Mahindra Scorpio, Tata Nexon, and Tata Punch are gaining strong popularity among customers across the country. The rising demand for these SUVs has helped both companies grow faster in the market and challenge the dominance of older players, making competition in the Indian car industry more intense than ever before.
