9 New Maruti Cars Launch in 3 Years

As competition intensifies, Maruti is looking to reduce its product development timelines by around 12 months

India is currently the world’s third-largest car market and remains one of the fastest-growing automotive markets globally. While Maruti currently leads with a market share of close to 40%, competition is intensifying across multiple fronts including new brands, models, powertrains and technology platforms.

Another challenge is achieving shorter product development cycles, as young consumers look for entirely new experiences. Maruti is cognizant of these factors and is aiming to reduce its product development timelines.

Use of AI for faster product development

Maruti will be relying on advanced tools to speed up its product development process. These will include AI (artificial intelligence) and machine learning and simulation-based product testing platforms. Currently, Maruti takes around 48 months for a new model to reach production stage. As competition intensifies, Maruti aims to reduce new product development time to 36 months.

In the existing product development process, a lot of time is spent on physical validation cycles. With AI and machine learning and simulation-based platforms, Maruti can speed up timelines via virtual validation and digital testing. Any issues can be spotted faster and fixed in a digital environment, thereby reducing the development cycle. These tools will ensure that when a new product reaches the prototype stage, there are fewer issues and refinements to address.

Maruti’s focus will be especially on UVs (Utility Vehicles), which have been registering strong growth. These are also expected to dominate the Indian automotive sector in the coming years. Maruti’s current bestsellers in this space include Fronx, Brezza, Victoris and Grand Vitara. Over the next three years, Maruti will be launching nine new models. Seven of these will be SUVs. To suit varying consumer preferences, Maruti will also ensure a wide range of powertrain options such as petrol, flex fuel, hybrid and fully electric variants.

Onboarding suppliers, partners during product development

Along with the use of advanced AI tools, Maruti will also work closely with its suppliers and partners to reduce product development cycles. Suppliers will be encouraged to participate in areas such as localization, engineering and validation. Instead of the existing sequential processes, Maruti aims to conduct supplier-side activities in parallel with the overall product development cycle.

These will include activities like manufacturing preparation, component design and tooling. This concurrent approach involving suppliers and partners will help reduce the bottlenecks typically associated with design errors and faults. Another strategy that Maruti is keen to implement is to increase the level of localization. This will deliver multiple benefits, including lower costs and reduced dependence on imports.

Maruti is aiming for a localization of more than 80%. With higher localization, it will become easier for Maruti to increase production to meet rising demand. This is essential since Maruti has been witnessing strong demand not just in domestic, but also across global markets. In May, Maruti registered its highest ever monthly sales at over 1.90 lakh units. Exports were close to 42k units, registering a strong double digit growth of 34.26%.

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