Maruti Suzuki Ciaz, the midsize sedan offered through the Nexa premium retail network, is approaching its conclusion. Reports indicate that the automaker intends to discontinue the Ciaz sedan by March 2025, with the remaining inventory expected to be phased out by April of this year. This decision comes as the Ciaz competes with rivals such as Honda City, Hyundai Verna, Skoda Slavia, and Volkswagen Virtus, amidst a challenging environment for the sedan segment in India, which is facing significant competition from the crossover and SUV markets, a trend observed globally. Notably, the discontinuation of the Ciaz coincides with Maruti Suzuki's preparations for the launch of the e Vitara electric SUV, which will also be marketed through the Nexa retail chain.

Globally, sedans have been experiencing a decline in sales and market share, and India is no exception. The rise of sub-compact and mid-size SUVs has significantly affected sedan sales. Contemporary consumers tend to favour the elevated stance and increased ground clearance of SUVs over the lower profile and road-hugging characteristics of sedans. Among the dwindling selection of sedans, the Maruti Suzuki Ciaz has been a prominent name. However, the decision to discontinue this model, without plans for a replacement, suggests that the largest car manufacturer in India is exiting the mid-size sedan market. Following the Ciaz's discontinuation, the only sedan remaining in Maruti Suzuki's lineup in India will be the sub-compact Dzire.

A brief overview of the potential factors influencing Maruti Suzuki's decision to discontinue the Ciaz is warranted.

Sales slowdown

Sales of sedans in India have experienced a notable decline over the past few years. In 2015, sedans accounted for 20 per cent of the Indian passenger vehicle market; however, by 2024, their market share had fallen to below 10 per cent. In contrast, SUVs have seen a remarkable increase, now representing over 50 per cent of total passenger vehicle sales in the country. Reflecting this shift, the mid-size sedan segment, previously led by brands such as Maruti Suzuki, Hyundai, and Honda, has faced a substantial drop in sales figures.

In terms of specific sales data, Maruti Suzuki reported the sale of 5,861 units of the Ciaz during the first nine months of FY25, from April to December. This figure represents a 34 per cent decrease year-on-year compared to the same timeframe in FY24. In the last quarter of 2024, the Maruti Suzuki Ciaz recorded sales of 659 units in October, 579 units in November, and 464 units in December, clearly illustrating the downward trend for sedans.

Maruti Suzuki didn't give Ciaz a major update

Initially introduced in 2014 as a successor to the Maruti Suzuki SX4, the Ciaz has not undergone any significant updates throughout its more than ten years in the Indian passenger vehicle market. The most recent update occurred in 2018 when the manufacturer released a minor facelift of the model. As a result, the Ciaz has fallen behind its competitors, such as the City, Verna, Virtus, and Slavia. These rival vehicles are equipped with advanced features, including a digital instrument cluster, electric sunroof, and ADAS, which the Ciaz lacks.

The Maruti Suzuki Ciaz offers a limited selection of engines. It is currently available with a 1.5-litre naturally aspirated petrol engine, which can be paired with a five-speed manual transmission or a four-speed torque converter automatic option. The manufacturer had briefly provided a diesel variant of the Ciaz, featuring a 1.5-litre DDiS diesel engine in 2019. However, Maruti Suzuki subsequently exited the diesel market due to the engine's incompatibility with BS6 emission standards. Additionally, the absence of turbocharged engines or strong hybrid powertrains has significantly diminished the Ciaz's attractiveness to consumers.

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