NEW DELHI — Maruti Suzuki India’s dominance in the domestic passenger vehicle market continued to erode in FY26, with its market share dropping to a 13-year low of 39.26 percent, according to data from the Society of Indian Automobile Manufacturers.
The decline marks the third consecutive year of market share losses for the country’s largest carmaker, which once controlled nearly half of India’s passenger vehicle market.
Since FY20, the Gurugram-based automaker has lost nearly 12 percentage points in market share, reflecting changing consumer preferences and intensifying competition.
The downturn comes despite Maruti Suzuki’s push into the fast-growing sport utility vehicle segment, including launches such as the Jimny and Victoris over the past few years. However, the company has struggled to gain significant traction in this category.
Utility vehicles now account for nearly 67 percent of India’s passenger vehicle market, but Maruti Suzuki’s share in this segment remains below 25 percent, highlighting a gap in its portfolio compared to rivals.
The company continues to rely heavily on its strength in the sub-4-meter segment, driven by popular models such as the Wagon R, Swift, and Baleno, where it holds a dominant 67 percent market share. However, growth in this segment has slowed sharply, expanding by less than 2 percent in FY26, compared with an 11 percent increase in utility vehicles.
Separately, the automaker recently received a draft assessment order from the Income Tax Authority involving a demand of Rs 5,786 crore. The company said the notice would not affect its financial or operational performance.
In a regulatory filing dated March 17, Maruti Suzuki said it would file objections before the Dispute Resolution Panel as part of due process.
“The company has received a Draft Assessment Order for the FY2022–23 wherein certain additions / disallowances amounting to Rs 57,864 million with respect to returned income (the income disclosed by the company in its Income Tax return) has been proposed,” the company said. (Source: IANS)
