Maruti Suzuki India Ltd’s (MSIL) decision to discontinue its mid-size sedan, Ciaz, from the market is expected to further decline the segment’s sales, which have already been dwindling. According to Society of Indian Automobile Manufacturers (SIAM) data, the wholesales of the mid-size sedan segment declined by 30% to 51,171 units in April-February 2024-25, compared to 73,108 units in the same period a year ago. Production also declined by 13.1% to 1,90,517 units.
The discontinuation of Ciaz was not officially confirmed, but sources cite the decline in sales over the last couple of years and increased competition from new entrants like Skoda Slavia and Volkswagen Virtus as reasons. The company may also be focusing on cannibalizing sales from its own Dzire compact sedan, which offers more features and safety ratings.
The data also shows that the overall sales of passenger cars have declined by 4.3% year-on-year to 1,10,966 units in February, while utility vehicles have grown by 9.1% to 2,08,795 units. This suggests that consumers are shifting their preferences towards SUVs, further depressing the demand for sedans.
The discontinuation of Ciaz is expected to have a significant impact on the market, leading to a further decline in the sales of mid-size sedans. The segment’s demand has already been declining due to changing consumer preferences and increased competition. As a result, the market is likely to see a greater emphasis on SUVs and crossovers in the coming months.