S-presso vs slowdown in the automobile industry

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S-presso vs slowdown

Indian economy and the automobile industry

The automobile sector of India is one of the major contributors to India’s GDP(Gross domestic product). Around 7.1 % of GDP comes only from the automobile industry. The automobile industry includes manufacturing, pre-sales, sales, service, and spare parts together contribute to achieving this number. But statistics say there happening a huge step down happening in the industry which is affecting our country’s economy in the deeper roots.

Factors influencing the breakdown

The waves of the global recession is still in the air and have hit our economy too in a serious way. We are not into the discussion of government policies and global changes here. But we can't just blindly keep a blind eye on these.

BS6 norms

Government of India mandated to have BS6 for all new vehicles from April 2020, which in turn influenced the market in many ways. There is a lot of confusion still need clarity about BS6 fuel, old cars with BS4, price hiking in both fuel and automobiles, etc…

Electric vehicles

Around the globe, the electric vehicle is flying high in news and India is a fast-growing country pushing for the transition.

Fuel and Insurance

The new changes brought in the pricing of fuels and auto insurance had created some setbacks for many customers in our country.

Maruti Suzuki

From the day it started, Maruti been into the heart of common people as the manufacture of economical cars. Maruti had launched a long array of cars into various segments to meet the requirements of every type of customer from hatchbacks to sedans, SUVs to cross overs. Maruti had 51% of the market share in the calendar year 2018. While the largest passenger vehicle manufacturer Maruti Suzuki recorded 8.05 percent at 17,31,450 units recording 51 percent market share in the calendar year 2018.

From the words of managing director of Maruti Suzuki Kenichi Ayukawa, “ Compared to last year, the market is different now. It is very difficult but we have to gradually come up to a high level. We (are) encourage(ing) the market and gradually increasing.” Maruti also faced a major step down in sales in the last quarter. Maruti Suzuki - the car manufacturers have been encouraging the market from the very beginning and they are still on it by introducing BS6 cars, new models, premium cars and facelift versions of success models into the market.

Maruti S-presso

The country’s largest carmaker, Maruti Suzuki, has initiated a new wave of hope into the slow-moving market with the launch of an entry-level product below 4 lakhs. Maruti S-presso launched into the Indian market into the micro/mini SUV segment. It came in 10 variants with 6 color options. The focus customers are mainly first time buyers and the mini/micro SUV with its charm started to gain appreciation all around. With strong and stubborn looks, economical and powerful 1.0-liter engine, top-notch interiors and fattish hood, Maruti is driving the growing popularity in the SUV segment. Within the price range and features offered Maruti S-presso stands high positioned without much of a threat to the position.

Quoting the words of Mr. Shashank Srivastava, executive director, sales and marketing at Maruti Suzuki, "We wanted to create something new in this segment, a fresh new vehicle for the first-time buyer, keeping in mind the trend that SUV is the fastest-growing segment with almost 27 percent growth. We are positioning the S-Presso as a mini SUV" and this will give a boost to the entire automobile industry in India.


By the launch of Maruti S-presso and seeing the positive responses around the country, as the company claims will inspire other carmakers to come up with new models into entry-level segments. Carmakers are already into the new change path as BS6 will be mandated from April 2020 and new models and concepts are getting ready with them. Maruti had made the first leap ahead by launching an array of cars in different segments with BS6 compliant engines and now they are in far front of the race with S-presso. Altogether we can say that Maruti and S-presso have started the race to beatdown the slowdown in the automobile industry.

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