Why Did Maruti Discontinue Ciaz?

• Despite selling in big numbers Maruti has decided to kill Ciaz 
   
• Tough European rivals and Maruti focus on SUVs were some decisive factors
   
• An all-electric or hybrid revival could be a possibility in far future
   

A little bit about Ciaz

We remember the Ciaz arriving in October 2014, positioned as a premium offering, even though it initially sold through the regular Maruti channels before moving to the more upscale Nexa dealerships in 2017. Its biggest strengths, right from the start, were its incredibly spacious cabin mileage and a quite comfortable ride quality. 

It quickly became a favourite for various MP and MLAs as well and was a common site in and around the elite Lutyens Zone in Delhi

Initially, it came with the reliable 1.4-litre K-series petrol engine and the popular 1.3-litre Fiat-sourced Multijet diesel engine. In 2015, Maruti introduced the SHVS (Smart Hybrid Vehicle by Suzuki) mild-hybrid technology on the diesel variant, a first for the segment at the time, which boosted its already impressive fuel efficiency figures, claiming a remarkable 28.09 kmpl. This focus on efficiency and comfort helped the Ciaz carve out a significant market share, even leading the segment for a period around 2017-2018.

A facelift arrived in 2018, bringing subtle cosmetic tweaks, more features, and importantly, a new, in-house developed 1.5-litre K15 petrol engine, also equipped with mild-hybrid technology. This engine, producing around 105 PS and 138 Nm of torque, became the mainstay. 

A 1.5-litre diesel engine developed by Maruti was also briefly introduced in 2019 but was unfortunately short-lived due to the company's decision to exit the diesel market entirely with the advent of BS6 emission norms in 2020.

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Great Start, Terrible Ending

The Ciaz certainly enjoyed its time in the sun. In its initial years, it was a strong contender, achieving Maruti's goal of capturing a significant chunk of the mid-size sedan market. We recall it commanding nearly a 30% market share in its peak years, with over 2.7 lakh units sold by its fifth anniversary in 2019. It successfully appealed to buyers upgrading from smaller Maruti cars and those seeking value and space.

However, the sales figures tell a story of gradual decline in recent years. While Maruti sold a respectable 15,869 units in FY22, this dropped to 13,610 units in FY23, and further down to 10,337 units in FY24. The final full fiscal year, FY25, saw the lowest numbers at just 8,402 units. Even a surprising year-on-year jump in monthly sales in February 2025 couldn't mask the overall downward trajectory. This decline mirrored the shrinking mid-size sedan segment overall, which saw its market share plummet from around 20% in 2015 to less than 10% by 2024.

Maruti Had To Fight Two Battles At Once

Several factors contributed to Maruti Suzuki's decision to halt Ciaz production. The most significant, undoubtedly, is the seismic shift in consumer preference towards SUVs thanks to carmakers like Tata and Hyundai who pushed so many models in such a short time that SUVs were the word of the day for anyone out and about to buy a car. 

Compounding this market trend was the Ciaz's lack of significant updates. The last major refresh was back in 2018. In a segment where technology and features evolve rapidly, the Ciaz fell behind. It lacked desirable features like a sunroof, ventilated seats, a modern digital cockpit, and advanced safety systems like ADAS, which competitors began offering.

Speaking of which, VW and Skoda did the unthinkable. They launched a full fledged European offerings complete with an quite powerful 1.0 Liter TSI, 5 Star GNCAP rating and robust build quality in a package that costs about 10-11 lakhs ex showroom. So for an average sedan buyer the Slavia and Virtus were no-brainer compared to the Ciaz, which came with a lethargic engine, no safety rating, aging design and a stone age interior. 

Maruti was now doing an impossible task of trying to fight two battles at once. The first was to respond to other carmakers by bringing out an SUV in every car segment and the other was to tackle Slavia and Virtus by giving Ciaz a very costly makeover along with an engine that could take on the Goliath TSi. I don’t need to tell you what Maruti chose.

They have bet a lot on their badge partnership with Toyota and both of the Japanese giants have lost interest in sedans(new Dzire is an exception, though).

Ciaz Could Return In An All Electric Avatar

While production has stopped, Maruti Suzuki officials have intriguingly hinted that this might not be the absolute end for the 'Ciaz' nameplate. 

 “When a brand is very strong, forms can change from time to time.”- Partho Banerjee, Senior Executive Officer for Marketing and Sales

Could the Ciaz name return, perhaps adorning a different body style more aligned with current market demands? Maybe a Ciaz-based crossover or a compact SUV? Or could it reappear on a future hybrid or even an electric vehicle as Maruti expands its green portfolio? While purely speculative, the idea isn't far-fetched, given the brand recognition the Ciaz name still holds.

Source- 1, 2, 3