Maruti Suzuki pulls the plug on Ciaz sedan: Here's why
What's the story
Maruti Suzuki will retire the Ciaz sedan by April 2025, Autocar India has reported.
The decision comes amid falling sales and a shift in the market toward SUVs.
Although Maruti Suzuki denied the claims in an official statement, several industry sources have confirmed the development to Autocar India.
The Ciaz's production is expected to end by March 2025, with sales concluding the next month.
Market shift
Sedan market share drops as SUV sales rise
The sedan market has witnessed a major decline in its share of India's car market, from 20% in 2015 to under 10% by 2024.
This decline is primarily attributed to a change in consumer preferences toward SUVs, which now make up over half of all passenger vehicle sales.
The mid-size sedan segment, previously ruled by brands like Honda, Hyundai and Maruti Suzuki, has also shrunk considerably.
Sales decline
Maruti Suzuki's market share plummets
Maruti Suzuki's market share in the mid-size sedan segment has plummeted from 35-40% in 2017-18 to a mere 11%.
The Ciaz, which was launched in 2014 as a successor to the SX4, initially thrived against rivals such as the Honda City and Hyundai Verna.
However, its monthly sales have now fallen into three digits with only 659 units sold in October, 597 in November and 464 in December last year.
Challenges
Factors contributing to Ciaz's declining appeal
Maruti Suzuki's abrupt exit from the diesel segment in 2020, a year after introducing an in-house-developed 1.5-liter DDiS diesel engine for the Ciaz, was the turning point for the model.
The engine was axed as it couldn't meet BS6 emission standards, leaving only a petrol option on offer when diesel made up 30% of its sales.
The absence of mid-lifecycle updates and a move toward naturally aspirated engines also hurt its market performance.
Strategy change
Maruti Suzuki's focus shifts to SUVs
Maruti Suzuki has also shifted its focus toward SUVs, with the likes of Jimny, Grand Vitara and Fronx driving growth.
At Nexa dealerships, SUVs have taken over the floor space while the Ciaz got a minimal marketing push in recent years.
With the discontinuation of Ciaz, Maruti Suzuki will essentially exit from the mid-size sedan segment.
This move is in line with an industry-wide trend where SUVs are pushing sedans to the sidelines.