In a significant move to enhance safety, Maruti Suzuki has introduced six airbags as standard across most of its passenger car portfolio. This update has triggered a positive market response, especially in the entry-level segment, with bookings rising by 7 percent. However, the price hike that accompanied the safety upgrade appears to be tempering this newfound momentum in actual sales.
Stronger Safety = Higher Customer Confidence
Maruti Suzuki’s Senior Executive Officer for Marketing and Sales, Partho Banerjee, confirmed that the company has seen a notable increase in customer enquiries and bookings following the rollout of standard six airbags. Models like the Wagon R and Celerio have especially benefited from this update.
“We’ve seen improved customer confidence, particularly in our entry-level offerings,” said Banerjee during the company’s recent earnings call. “Wagon R, for instance, has seen a sharp spike in enquiries post the safety enhancement.”
Price Hike Slows Conversion to Sales
While the safety upgrade has clearly boosted customer interest, converting those leads into confirmed sales has proven more challenging. The price increase—ranging between ₹10,000 and ₹35,000 depending on the model—has been a sticking point for many buyers in this price-sensitive segment. The Eeco van, in particular, has seen a slower uptake post-update due to the added cost.
Banerjee acknowledged the challenge and said Maruti is working closely with buyers to provide more flexible financing solutions to make these vehicles more accessible.
Entry-Level Hatchbacks Still Losing Ground
Despite the spike in bookings, Maruti’s entry-level hatchbacks continue to face long-term headwinds. Banerjee noted that the overall small car segment is steadily declining, with SUVs continuing to cannibalize market share from hatchbacks. Models like the Alto and S-Presso have especially felt the pressure as customer preferences shift.
S-Presso and Ignis Miss Out on the Safety Upgrade
Interestingly, two models—the S-Presso from Maruti’s Arena range and the Ignis from the Nexa lineup—have not received the six-airbag update. According to Banerjee, these models are nearing the end of their lifecycle and contribute just 2.5 percent to the company’s total sales, making them unlikely candidates for further investment in safety enhancements.
“We’ve covered 97 percent of our portfolio with the standard six-airbag feature,” Banerjee said, subtly hinting that updates for the remaining 3 percent are not currently on the table.
Key Takeaways:
-
7% increase in bookings for Maruti’s entry-level cars following the rollout of six airbags.
-
Models like Wagon R and Celerio have seen a noticeable jump in customer interest.
-
Price hikes are affecting conversion of enquiries into actual sales.
-
Maruti is offering new financing options to ease buyer concerns.
-
The entry-level hatchback segment continues to shrink amid SUV dominance.
-
S-Presso and Ignis unlikely to receive the six-airbag update.
As safety becomes a bigger priority for Indian car buyers, Maruti Suzuki’s strategic move to standardize six airbags reflects a growing shift in market expectations. However, balancing affordability and safety remains a tightrope walk in the country’s fiercely price-conscious entry-level segment.
Read More: