Maruti Suzuki India (MSI) on July 5 launched premium MPV Invicto at a starting price of ₹24.8 lakh, making it the costliest car in its current portfolio.
The introductory prices of the three trims of the model range from ₹24.8-₹28.4 lakh (ex-showroom).
With the model, the carmaker known for its affordable mass-market cars, is looking to gain a foothold in the premium three-row multi-purpose vehicle segment while strengthening its presence in the overall MPV segment where it commands around 50% market share already.
Meanwhile, shares of Maruti Suzuki India on July 5 climbed nearly 4%, taking its market valuation higher by ₹10,519.95 crore.
The stock rallied 3.61% to settle at ₹9,994.50 apiece on the BSE. On the NSE, it moved up by 3.55% to end at ₹9,990.10 per piece.
During the day, the stock jumped 4% to its 52-week high on both the bourses and crossed the ₹10,000-mark for the first time.
The stock was the biggest gainer among the Sensex firms.
The company's market valuation jumped ₹10,519.95 crore to ₹3,01,913.92 crore on the BSE in-line with a surge in its share price.
People film Maruti Suzuki’s multi-purpose vehicle Invicto after its launch in Gurugram, India, July 5, 2023. | Photo Credit: REUTERS
In the market segment of below ₹10-lakh the company has been the undisputed leader in the domestic automobile market with a share of 60% and in the last fiscal it attained leadership in the ₹10-15 lakh price segment.
With the market evolving towards more premium products, the country's largest carmaker is now looking to tap the above ₹20-lakh category with its first offering in the segment, Invicto.
Speaking at the launch event, MSI MD and CEO Hisashi Takeuchi said the model has been carefully crafted to match the modern taste of NEXA customers, who want a premium three-row vehicle with the dynamism of an SUV.
He noted that the demand for the premium models has been going up considerably in the domestic market.
Mr. Takeuchi stated that Grand Vitara, Fronx and Jimny have substantially enhanced the automaker's market share in the SUV segment.
The company's share in the SUV segment, which stood at 8.5% in the first quarter of FY23, has risen to close to 20% in Q1 FY24, Mr. Takeuchi stated.
"While we are at the second position in the industry now, it is only a matter of time before we take the number one position in the SUV segment," he noted.
MSI aspires to become the leading SUV player this fiscal with a market share of around 25%.
Elaborating further, MSI Senior Executive Officer (Marketing and Sales) Shashank Srivastava said the company attained leadership in the ₹10-15 lakh vehicle segment last fiscal.
He noted that sale of cars above ₹10 lakh price tag has more than tripled from 2015-16 till last fiscal.
"This has emboldened us and we see an opportunity in the over ₹20-lakh category as well with the introduction of the Invicto," Mr. Srivastava said. MSI has received over 6,000 bookings for the model so far, he added.
The Invicto comes powered by a 2-litre petrol engine mated with strong hybrid technology and delivers a mileage of 23.24 km per litre.
It comes with a seating configuration of seven and eight seats.
MSI will source the strong hybrid model from Toyota Kirloskar Motor (TKM) as part of a global collaboration between Toyota and Suzuki.
TKM already sells Innova HyCross in the domestic market and the same would be supplied to MSI with certain changes in design and other elements.
Mr. Takeuchi said, looking at the immense potential of the Indian automobile market, MSI's parent Suzuki Motor Corporation has outlined a robust growth plan.
As per Suzuki's growth strategy towards 2030, it targets to achieve a global turnover of ₹4.32 lakh crore in FY31, Mr. Takeuchi said.
This is exactly double the turnover of ₹2.16 lakh crore achieved in FY22 and for this, Suzuki has planned an investment of around ₹2.8 lakh crore by FY31 towards enriching products, bringing new technologies and setting up new facilities, he added.
"India of course will play a very big role in this goal," Mr. Takeuchi said, adding MSI's turnover would also double by 2030-31.
He noted that in line with anticipated market growth in 2030, the company is also expanding its manufacturing capacities.
"... construction at our new manufacturing facility in Kharkhoda is in full swing and we plan to commission the first plant with an annual manufacturing capacity of 2.5 lakh units by 2025," Mr. Takeuchi said.
Once fully operational, the facility will have an annual capacity to manufacture 10 lakh vehicles and will be one of the world's largest single location manufacturing sites, he added.
Suzuki also has a well-defined road map on carbon neutrality for India, Mr. Takeuchi said.
"We are committed to bringing six EVs by FY31 across different segments. Besides, in our journey of vehicle decarbonisation, we will continue to deploy multiple powertrain technologies like CNG and Hybrid in our products and introduce biofuels like Ethanol Flex Fuel and Biogas," he added.
