Maruti Suzuki Ciaz to be discontinued by April 2025
Maruti Suzuki is set to discontinue its Ciaz sedan by April 2025 due to declining sales and a significant market shift towards SUVs. Production is scheduled to conclude by March 2025, with sales ceasing the following month. Although Maruti Suzuki has officially refuted these claims, multiple industry insiders have corroborated the planned phase-out.
Declining Sedan Market and Ciaz Sales
The Indian automotive landscape has seen a dramatic reduction in sedan popularity, dropping from 20% of the market in 2015 to less than 10% in 2024, while SUVs have surged to over 50% of passenger vehicle sales. This trend has led to a contraction in the midsize sedan segment, now comprising only five models as of December 2024, down from nine in 2017. The Volkswagen Virtus currently leads this category, followed by the Skoda Slavia and Hyundai Verna. Maruti Suzuki’s share in this segment has dwindled to 11%, a steep decline from the 35-40% it commanded during 2017-18.
Launched in 2014 as a successor to the SX4, the Ciaz initially performed well, often topping its segment against competitors like the Honda City and Hyundai Verna. However, recent monthly sales figures have been underwhelming, with 659 units sold in October, 597 in November, and 464 in December 2024. The first nine months of FY2025 saw total sales of 5,861 units, representing a 34% year-on-year decline, outpacing the overall segment’s downturn.
Factors Contributing to the Ciaz’s Decline
A pivotal factor in the Ciaz’s diminishing appeal was Maruti Suzuki’s unexpected withdrawal from the diesel market in 2020. This decision came merely a year after introducing the in-house-developed 1.5 DDiS diesel engine for the Ciaz. The inability to comply with BS6 emission standards led to the discontinuation of this engine, leaving the Ciaz with only a 1.5-litre petrol variant at a time when diesel models accounted for 30% of its sales.
Additionally, the Ciaz suffered from a lack of significant mid-cycle updates, causing it to fall behind rivals that offered more contemporary features and design enhancements. This stagnation, coupled with the broader consumer shift towards SUVs, has rendered the Ciaz less competitive in the evolving market landscape.
In summary, the combination of strategic missteps, such as the diesel exit, insufficient product updates, and changing consumer preferences, has culminated in Maruti Suzuki’s decision to phase out the Ciaz by April 2025.
