Maruti Suzuki India Limited (MSIL) will work around the central government’s taxation policy to pitch products that will be affordable for the Indian customer while fulfilling their desire to own an SUV.

The central government has recently revised its definition of the SUV as a vehicle with an engine size of 1.5 litres and above, a body length of more than 4000 mm, ground clearance of 170 metres and above, which will attract a GST of 28 per cent and a cess of 20 per cent, totalling a taxation of 50 per cent.

Chairman R.C. Bhargava had recently called for a rationalisation of the taxation structure on vehicles on a par with international norms.

However, the company, in its bid to improve its market share, is focussing on bringing new SUVs in its portfolio. Its SUV market share of 13 per cent is pulling down its overall market share to 42 per cent.

The company is aiming for a 50 per cent market share with the introduction of two new SUVs. However, a 50 per cent tax regime may prove a damper.

Speaking on the subject, Shashank Srivastava said: “There are sub-segments within the SUV segment like the compact SUV segment, where the new Brezza operates and has competition in the Venue, Sonet, Punch, Nexon with a 54 per cent market share, while the mid-SUV segment with players such as the Grand Vitara, Seltos, Creta, Harrier, which have a 45 per cent market share.

“The premium SUVs cater to 1 per cent of the market. So there are only two sub-segments that get you volume, the compact SUV and the mid-size SUV.”

These volume sub-segments have become so large that there are different requirements of different customers within these sub-segments, said the marketing head.

“There are demands of an urban SUV, a lifestyle SUV, a performance SUV. We are keeping track of the developing segments,” said Srivastava.

Giving the example of how the compact sedan and the compact SUV segments developed, Srivastava said: “We saw OEMs modify specs to get tax relief. The Dzire was more than 4000 metres but it was made shorter and becamea hugely successful model for us. And so happened with the Aura, Amaze,” said Srivastava.