Just about 6 years back, in year 2019, Maruti Suzuki still had a market share of about 51% of the Indian passenger car market. However, since then, its market share has been steadily slipping on an annual basis. In 2025, the market share of Maruti slipped to 38.8%, a very sharp fall since 2019. This is also the first time that the market share of Maruti Suzuki in the passenger car segment has gone below the 40% mark. Of course, Maruti is still the leader; but not by a margin! 

For a very long time, Maruti has relied on the small and compact cars segment to drive its passenger car numbers. That segment has taken a hit in the last few years for several reasons. Entry level cars have become costlier due to steep GST levels and higher input costs. That may get partially addressed by the GST rate cut to 18%, but then it is yet to be seen if such market share gains will be sustainable in the long run. Critically, it has been a perceptible shift in consumer preferences; who have shown a clear preference for bigger cars for families rather than small cars. Hence, most of the growth has gone to other segments. 

If you look at the big 4 in terms of auto market share, Maruti still leads at 38.8% followed by Mahindra & Mahindra 14%, Tata Motors 13% and Hyundai 12.5%. It is not just Maruti that has given up market share to M&M and Tata Motors in the passenger car industry, but even Hyundai has fallen from second place to fourth place. The big growth thrust for M&M and Tata Motors has come from a multi-pronged focus on newer models, SUV segment, powerful IC engines, EV segment presence, as well as a slew of hybrid car models. It is this multi-model approach that Maruti is lacking and that is showing up in falling market share. 

That is the intent as per the MD & CEO of Maruti Suzuki, Hisashi Takeuchi. But that is not going to be simple. Part of the plan is to focus on compact and sub-compact SUVs, which are the flavor of the Indian market. But that is an area where players like M&M and Hyundai have a dominating presence and Maruti SUVs have not been in the same league. Also, if you look at the EV and hybrid space, that is largely dominated by Tata Motors and M&M. Then there are the likes of Honda and Kia that are hungry to grow their market share with launch of trendy and innovative models. Maruti has the benefit of legacy; but that alone will not be enough. It must believe and act like a market-savvy manufacturer!