Maruti Suzuki India has flagged rising vehicle prices as a key challenge for the entry-level car segment, even as demand for its CNG models continues to outstrip supply, resulting in a sizeable order backlog.
Speaking during the company's monthly sales call on Saturday, Senior Executive Director (Sales & Marketing) Partho Banerjee said the entry-level segment continues to hold significant growth potential despite affordability concerns.
Separately, in an interaction with NDTV Profit, Maruti said price increases remain a challenge for first-time car buyers, prompting the automaker to double down on its CNG portfolio.
"Price hike is definitely a problem, especially for the entry-level segment," Banerjee said.
To address the affordability challenge, Maruti is aggressively pushing CNG vehicles, which offer lower running costs than conventional petrol models.
The automaker currently offers 16 CNG models and has a huge backlog of orders for these vehicles. Maruti told NDTV Profit that the company's overall pending order book stands at around 1.6 lakh units, with CNG models accounting for a significant portion of the backlog.
The company sold more than 80,000 CNG vehicles during the month and said CNG sales have been rising sharply as customers increasingly opt for more economical fuel alternatives. Maruti currently commands around 55% market share in the green vehicle segment.
During the monthly sales call, Banerjee also said Maruti recorded its highest-ever monthly sales, crossing the 2 lakh-unit milestone for the first time. The company also posted its highest-ever monthly retail sales of 1.78 lakh units, driven by strong demand for SUVs, entry-level cars and CNG vehicles.
He added that Maruti's market share has been increasing month after month and reiterated the company's strategy of maintaining a presence across all vehicle segments while expanding production capacity for SUVs and electric vehicles through its upcoming Hansalpur plant.
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