Companies

With premium tag, Maruti Dzire swiftly tops entry-level sedan segment

G Balachandar Chennai December 12 | Updated on January 09, 2018

dzire

Market share grows to 63% in Q2, year-on-year

Maruti Suzuki’s compact sedan Swift Dzire has not only been holding its own in a segment that has a plethora of models, but has also increased its share despite the stiff competition.

The company’s third-generation Dzire, which recently achieved the fastest one lakh sales record in the Indian passenger vehicle market in five-and-a-half months, has seen its market share in the segment grow to 63 per cent in the second quarter of this fiscal from 51 per cent in the year-ago period.

During April-November 2017, 130,811 units of Dzire were sold, while Hyundai Xcent, the No 2 model, sold about 27,000 units, and Honda Amaze about 14,000.

There were only four players 7-8 years ago and Maruti dominated the segment with about 41 per cent share.

In 2016-17, the number of players having a presence in the entry-level sedan segment grew to 11. Yet, Dzire’s market share increased to 50 per cent. The third-generation Dzire has pushed up its share to 63 per cent. The new Dzire even replaced the Alto as the best-selling model in the country for some months.

“The third-generation Dzire has created disruption in the market. Despite new products from the competition, it accounts for more than half of the entry-level sedan segment,” RS Kalsi, Senior Executive Director (Marketing and Sales), Maruti Suzuki, told BusinessLine.

Buyers’ income

The company has also found that the average household income of families buying Dzire has risen 22 per cent (at about ₹80,000).

“It showcases brand Dzire becoming affluent and aspirational. It complements the new design, enhanced technology and safety features. In a way, it reflects the aspirations of the young generation of our country,” he said.

More than half of new Dzire’s customers are first-time car buyers, who now with higher disposable income prefer to buy a car that offers more features and looks better than an entry-level small car.

Published on December 12, 2017

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