Maruti to roll out compact SUV on Baleno platform

The new model is among a series of SUVs planned by the Suzuki Motor Corp. unit to bolster efforts to regain market share lost to new and established rivals such as Hyundai Motor India Ltd and Kia Motors in India’s fast-growing SUV market.

Maruti Suzuki India Ltd is developing a compact sport-utility vehicle (SUV) that would be based on its popular Baleno hatchback, two people directly aware of the company’s plans said.

In the compact SUV segment, where Maruti leads with Vitara Brezza, competition has intensified with almost every manufacturer eyeing a pie of this growing market. (PTI File Photo)

Code-named ‘YTB’, the new model is likely to be designed as a coupe or a mini crossover, the people cited above said on condition of anonymity.

The new model is among a series of SUVs planned by the Suzuki Motor Corp. unit to bolster efforts to regain market share lost to new and established rivals such as Hyundai Motor India Ltd and Kia Motors in India’s fast-growing SUV market. By tapping the existing Baleno platform, Maruti would be able to save on costs and time spent normally on developing a vehicle from scratch.

“Internally, it’s been referred to as the ‘sister car’ of Baleno and companies often take this route to expand their product portfolio quickly. Maruti has already adopted this strategy successfully with XL6 and Ertiga. They definitely need a good number of SUVs in the portfolio to keep increasing their market share in the SUV segment,” said one of the two people cited above.

The new model would become the second compact SUV offering for Maruti after Vitara Brezza, which was launched in 2016. Though the car market leader has maintained its dominance in the hatchback and sedan segments there has been a steady increase in customer preference towards SUVs, necessitating the need for Maruti to grow its own portfolio.

In the past year, the company has lost market share in the highly profitable and volume-generating SUV segment to rivals such as Hyundai and Kia due to the lack of new products.

In the compact SUV segment, where Maruti leads with Vitara Brezza, competition has intensified with almost every manufacturer eyeing a pie of this growing market.

In FY20 and the first six months of the current fiscal, Hyundai tipped Maruti as the largest maker of SUVs in India.