Maruti Suzuki to Phase Out Ciaz by April 2025

Amid declining sales and a market shift toward SUVs, Maruti Suzuki is set to discontinue the Ciaz mid-size sedan. Autocar Professional has learned that production will cease by March 2025, with sales expected to end by April.

While Maruti Suzuki has denied the suggestion in an official statement—terming it "incorrect"—multiple industry sources confirmed the development.

The Rise and Fall of the Ciaz
Launched in 2014 as a replacement for the SX4, the Ciaz enjoyed early success, often leading its segment against the Honda City and Hyundai Verna. Spacious, fuel-efficient, and positioned under Maruti’s premium Nexa retail network, it carved out a niche for itself in the mid-size sedan market.

However, changing consumer preferences and the discontinuation of its diesel variant have led to a steady sales decline.

A Shrinking Segment
Perhaps the most significant contributor to the sales decline is the shift in buyer tastes. In 2015, sedans accounted for 20% of India’s car market; by 2024, that share had dropped below 10%, with SUVs rising to over 50% of total passenger vehicle sales.

As a result, the mid-size sedan segment, once a stronghold for brands like Honda, Hyundai, and Maruti, has shrunk significantly. By December 2024, only five models remained, down from nine in 2017.

Volkswagen now leads the segment with the Virtus, followed by Skoda and Hyundai with the Slavia and Verna. Maruti Suzuki’s share has plummeted to 11%, a far cry from the 35-40% it held in 2017-18.

A Story in Numbers
Mid-size sedan sales peaked at 173,374 units in FY18, before declining steadily to 97,466 in FY24. The first nine months of the current financial year saw sales again, by 32%, to just 53,326 units.

On a monthly basis, the Ciaz saw sales of 659 units in October, 597 in November, and 464 in December 2024, totaling 5,861 units for the first nine months of FY25—a 34% decline YoY, outpacing the segment’s overall contraction.

Diesel Exit and Missing Updates
One of the turning points for Ciaz was Maruti Suzuki’s abrupt decision to exit the diesel market in 2020, just a year after launching the in-house-developed 1.5 DDiS diesel engine for the Ciaz. Unable to meet BS6 emissions standards, the engine was axed, leaving the sedan with only a 1.5L petrol option at a time when diesel made up 30% of its sales.

Compounding the issue, the Ciaz remained largely unchanged after its last major update in 2018. While rivals introduced ADAS, sunroofs, digital instrument clusters, and turbo-petrol engines, the Ciaz continued with a naturally aspirated engine that lacked the power and refinement of its competitors.

Pivot to SUVs
In sync with market trends, Maruti Suzuki also shifted its focus decisively toward SUVs, with models like the Brezza, Grand Vitara, and Fronx driving growth. Even within Nexa dealerships, SUVs dominated the floorspace, while the Ciaz received minimal marketing push in recent years.

What’s Next?
With the Ciaz’s discontinuation, Maruti Suzuki will effectively exit the mid-size sedan segment, mirroring an industry-wide trend where SUVs are pushing sedans to the margins.

However, sedans aren’t entirely dead. Honda continues to push the City with hybrid tech and ADAS, Hyundai’s all-new Verna brings bold styling and turbocharged engines, and Skoda-Volkswagen have positioned the Slavia and Virtus as premium, fun-to-drive alternatives.

However, for sedans to remain relevant, manufacturers must move beyond fuel efficiency and comfort, offering hybrid powertrains, advanced safety tech, and premium features to attract modern buyers.