Maruti Suzuki India’s hold on the domestic passenger vehicle market weakened in FY26, with its market share dropping to a 13-year low of 39.26%, as per data from the Society of Indian Automobile Manufacturers (SIAM). This marks the third consecutive year of decline for the carmaker, which previously had nearly half of India’s passenger vehicle market. Since FY20, the company has lost about 12 percentage points in market share.
The decline comes despite Maruti Suzuki’s efforts to expand in the SUV segment with models like the Jimny and the Victoris over the past three-and-a-half years. However, the company has faced challenges in gaining significant traction in this category. Utility vehicles now make up almost 67% of India’s passenger vehicle market, but Maruti Suzuki’s share in this segment remains below 25%.
In contrast, Maruti Suzuki still heavily relies on its dominance in the sub-4 metre segment, driven by models like the Wagon R, Swift, and Baleno, where it holds a strong 67% market share. However, growth in this segment has slowed considerably, with an expansion of less than 2% in FY26, compared to an 11% growth in utility vehicles.
Last month, the carmaker received a draft assessment order from the Income Tax Authority, involving a demand of Rs 5,786 crore. Maruti Suzuki clarified that this notice will not impact its financial or operational performance. The company stated in a regulatory filing on March 17 that it will present its objections before the Dispute Resolution Panel as part of due process.
