Suzuki To Launch New Entry Level Cars With Mild Hybrid, CNG  And Flex – Fuel Options

Suzuki’s new approach to introduce an entry Level car could be the solution of its falling hatchback sales. In their recent Financial Year 30 management plan Suzuki motors have shared a product strategy to rapidly develop new entry segment products that can easily meet the preferences of  Entry Level Models. 

As per the Plans Suzuki has thought of introducing a new unique entry level car that can easily serve consumers with lower annual income.  The automaker highlighted the introduction of a new unique entry level car as a part of its strategy to ramp up the sales of entry level cars rather than SUV’s . Its possible that Suzuki might provide the car with new powertrain options such as a Hybrid, A mild Hybrid, CNG and A flex Fuel Alternative as well. 

Entry Level Car Sales Slowdown

The Sustained weakness in the small car segment has been a prime cause of concern for many manufacturers. The Slowdown has reflected de- growth in the entry level or small hatchback segment. This is the segment that used to attract most sales as most users migrating from 2 wheeler options to 4 wheeler options used to choose a car for this segment. 

But the overall change in preference of the people along with the availability of easy credits has pushed people to spend more and opt for SUV’s rather than smaller cars. Demand for SUV’s continues at a slow pace and continues on its downward spiral. The share of first time buyers has relatively come down over the years by 40 %. 

Reduction In Suzuki’s Over All Share

Suzuki’s overall share has reduced to 41 % primarily due to the weakness in the small car segment which used to be Suzuki’s strong hold. Suzuki considers its growth in the small car segment to be necessary to maintain its 50% share of the overall Indian Market. 

Suzuki’s overall plans to ramp up the entry level car segment could include the launch of new cars that have been specifically designed to provide the new users with significant safety features at a lower price point. The safety concern with smaller cars has also been one of the reasons due to which the sales of entry level cars has dwindled overtime. Safer entry level cars at a lower price point can possibly help the segment rise back to its past highs.

The increased prices of Hatchbacks with 6 airbags and other safety ancillaries has over time risen north  of 8 Lakh Rs. And hence, users use easy credit schemes and rather opt for SUV’s than Hatchbacks. With the increasing road infrastructure users do need cars that can easily provide high speed driving capabilities with the seamless presence of safety features.