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It seems that after the strike at the Manesar plant, Maruti Suzuki India is all set to regain its profits. It plans to launch a sports utility vehicle (SUV) in the market. This is one of the fastest growing segments in the country. The company will showcase a concept for an SUV at the Auto Expo that will be held in Delhi in January, 2011.

A senior executive of the company said that the SUV segment has “grown significantly” over the past years and the company wants to make its presence felt in this segment. He added that it will take at least two years for the company to start manufacturing its SUV. The details of the engine and other specifications are expected to be “worked out” in a short while.

According to the Society of Indian Automobile Manufacturers (Siam), the SUVs comprise about seven to eight percent of the 2.5 million passenger vehicles sold in India. The companies like Mahindra and Mahindra have a lion’s share in the market, and experts say that this share might double in the next ten years.

Mahantesh Sabarad, senior vice president, equity research, Fortune Equity Brokers (India) Ltd observes that “SUVs are bound to grow as income levels go up. We will see more and more proliferation of such kind of vehicles in the market….SUVs are forming a larger chunk of the market. It will account for 15% of the total market in the next 10 years.”

“It’s going to be tough ride for the company as it does not have a diesel engine. It should look to develop its own diesel engine in the future,” he said. “Another thing that the company needs to keep in mind is a good suspension. SUV suspensions are what make or break a vehicle.” So before it enters this segment, it will have to do a lot of research.

The company executives say that it has not yet been decided whether the SUV will be developed in India or with the help from Suzuki. Also the company does not manufacture diesel engine. The diesel engines that power its Swift, DZire, and Ritz are made by Italian company Fiat SpA.

The company was once the leader in the small car segment. But with more number of players entering this segment, the competition has become really stiff and threatening its share in the market. The market share of the company fell by 40 percent when more players entered the market. This segment has always been the focus area for the company, but it seems that this focus will now shift and the company will soon concentrate on entering into new segments. Another executive said that company plans to unveil a new concept but did not say whether it be an SUV. The spokesperson of the company refused to comment on this matter.

In order to regain its market share, the company has already started taking some concrete steps. It launched a premium sedan in the market named Kizashi this year to compete with Camary and Accord. It has also imports the Grand Vitara on demand. This car is a premium sedan made by its parent company. However, only time will tell whether the company is successful in this sector or not.