InvestorQ : What is Maruti’s strategy to boost its sales in the post-COVID scenario?
Deepa Salunkhe made post

What is Maruti’s strategy to boost its sales in the post-COVID scenario?

Arya Nanda answered.
8 months ago

Clearly, Maruti is working on multiple strategies to ensure that its sales pick up post the pandemic when growth and consumption return. For example, Maruti plans to increase its market share in the SUV segment by repositioning its crossover vehicles as mini-SUVs.

The primary focus of its strategy will predicate on improving its profitability and operating margins following the economic disruption. This becomes urgent as it has to recover the lost business over the last on six months due the pandemic and its lag effect.

Maruti could not generate the kind of volumes in the mid-size SUV segment that Hyundai’s Creta could generate due to its more sleek design. Maruti will rely on the new S-Cross to draw better volumes than the previous version of the model.

Bigger vehicles like SUVs are financially lucrative with higher margins but need to be supported by economies of scale. After the launch of new Creta, Hyundai had clearly got the better of Maruti to emerge as the biggest SUV maker in the domestic market.

Maruti is already market leader in the entry-level SUV space but it is in the mid-SUV segment that Maruti faces a serious challenge from Hyundai. Maruti had reported a net loss in the June quarter, the first time in history. Maruti needs to put its best foot forward.