Maruti Suzuki’s recent decision to make six airbags standard across most of its entry-level cars has led to a significant increase in customer interest, though higher prices are slowing down actual sales.
Boosting Buyer Confidence
Maruti Suzuki recently upgraded nearly its entire vehicle lineup to include six airbags as a standard safety feature. This move has notably boosted customer confidence, especially for the company’s more affordable models.
Partho Banerjee, Senior Executive Officer of Marketing and Sales at Maruti Suzuki, confirmed this during a recent earnings call. He stated that the company has seen a rise in enquiries and bookings, particularly for popular models like the Wagon R.
In July alone, bookings for entry-level cars such as the Celerio, Wagon R, and Swift surged by an impressive 7 percent. This indicates a strong positive response from consumers to enhanced safety features.
The Price Point Challenge
While interest is up, converting these enquiries into actual sales has proven challenging. The standard six-airbag update has also led to price increases, ranging from Rs 10,000 to Rs 35,000 depending on the model.
Banerjee explained that customers in this price-sensitive segment are finding it difficult to manage the initial down payments and financing options. The Eeco’s six-airbag update, for instance, has been particularly affected by this price adjustment.
Maruti Suzuki is actively exploring new, more accessible financing options to help customers overcome this hurdle and finalize their purchases.
Navigating a Changing Market
The entry-level hatchback segment, which includes models like the Alto and S-Presso, continues to face a steady decline. The overall automotive industry has remained relatively flat, but there’s a significant shift happening within segments.
SUVs are increasingly gaining market share, drawing customers away from traditional hatchback offerings. This trend further complicates the sales landscape for Maruti’s smaller cars, despite their new safety upgrades.
End of the Road for Some Models?
Interestingly, not all Maruti models will receive the standard six-airbag update. The S-Presso from the Arena lineup and the Ignis from the premium Nexa lineup are still awaiting this safety upgrade.
However, it appears unlikely they will receive it. Both models are nearing the end of their lifecycle, and their combined contribution to Maruti’s total sales volume is quite small, at just 2.5 percent.
This suggests Maruti is focusing its safety upgrades on the models that form the vast majority of its sales portfolio, ensuring widespread impact where it matters most.
- Maruti’s entry-level cars saw a 7 percent increase in bookings after gaining standard six airbags.
- Increased prices for the updated models are hindering actual sales conversions.
- The Wagon R, Celerio, and Swift are among the models benefiting from increased interest.
- The Ignis and S-Presso are unlikely to receive the six-airbag update due to their impending lifecycle end and low sales volume.
Maruti Suzuki continues to adapt its strategy in a dynamic market, balancing safety enhancements with consumer affordability to maintain its dominant position.
