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Maruti Suzuki To Discontinue Ciaz Amid Sales Decline: Production To Be Stopped By March 2025
Maruti Suzuki plans to discontinue the Ciaz by April 2025 due to declining sales and a market shift towards SUVs. Production will end by March 2025, with sales ceasing shortly after. Although Maruti Suzuki officially denied these claims, industry insiders confirmed the news. The shrinking sedan market and changing consumer preferences have significantly impacted the Ciaz's performance.
The midsize sedan segment has seen a drastic reduction in models, dropping from nine in 2017 to just five by December 2024. Volkswagen Virtus now leads this segment, followed by Skoda Slavia and Hyundai Verna. Maruti Suzuki's share has fallen dramatically to 11 percent from its previous dominance of 35-40 percent in 2017-18.
Shrinking Sedan Segment
In 2015, sedans made up 20 percent of India's car market. By 2024, this figure had dropped below 10 percent as SUVs surged to over half of all passenger vehicle sales. This shift has led to a significant contraction in the midsize sedan segment, once dominated by brands like Honda, Hyundai, and Maruti.
The Ciaz was introduced in 2014 as a successor to the SX4 and initially performed well against competitors like Honda City and Hyundai Verna. However, its monthly sales figures have dwindled significantly, with only three-digit numbers recorded recently.
Reasons For Decline
A major factor in the Ciaz's decline was Maruti Suzuki's decision to exit the diesel market in 2020. This move came just a year after launching their own 1.5 DDiS diesel engine for the Ciaz. The engine couldn't meet BS6 emissions standards, leaving only a petrol option when diesel accounted for 30 percent of sales.
Another issue was the lack of updates for the Ciaz after its last major refresh in 2018. While competitors introduced features like ADAS and turbo-petrol engines, the Ciaz continued with its naturally aspirated engine lacking power and refinement.
Focus On SUVs
Aligning with market trends, Maruti Suzuki shifted focus towards SUVs such as Jimny, Grand Vitara, and Fronx. These models have driven growth while Nexa dealerships prioritised SUV displays over promoting the Ciaz.
The midsize sedan segment peaked at sales of 1,73,374 units in FY18 but steadily declined to just 97,466 units by FY24. The Ciaz saw monthly sales figures drop further: October had 659 units sold; November had 597; December saw only 464 units sold.
No Replacement Planned
With the discontinuation of the Ciaz, Maruti Suzuki will exit the midsize sedan segment entirely. This mirrors an industry-wide trend where SUVs are increasingly sidelining sedans.
The total sales for the first nine months of FY25 amounted to just 5,861 units—a year-on-year decline of 34 percent—outpacing even the overall contraction within this segment.
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