Friday | May 23 2025 | 01:41:53 PM
Maruti Suzuki has warned of a continued slowdown in the domestic automobile market, cautioning about very slow growth in FY26. During its Q4 results conference call held yesterday, the company indicated that the domestic industry is expected to grow by only 1–2 per cent in the current financial year.
The management pointed to a broader issue of stagnating overall demand, specifically highlighting affordability concerns for small cars. In FY25, Maruti recorded just a 3 per cent growth in its domestic car sales.
A major consumer shift is underway, with the middle-income segment and young population showing reduced interest in purchasing cars compared to previous years. A decade ago, small and mid-sized cars constituted 64 per cent of total car sales, but this figure has now fallen sharply to 35 per cent.
Factors such as inflation, rising cost of living, and the increased adoption of ride-hailing services are contributing to this trend. The evolving consumer behaviour raises fresh questions about the prospects of a significant revival in the auto industry's growth over the next few years.
