New Delhi, April 28 -- Maruti Suzuki India Ltd, India's largest car seller, faces mounting challenges as the market shifts. While its majority shareholding from Japanese parent Suzuki Motor Corp. and operations focused in India allow it to blend Japanese manufacturing expertise with a deep understanding of domestic consumer sensibilities, the company is now grappling with evolving dynamics.

Despite commanding 41.5% of the domestic market and accounting for 43% of the nation's car exports, Maruti is struggling to maintain its market dominance. Strategic missteps and changing consumer preferences have put its position at risk.

The company was late to capitalize on the electic vehicle (EV) megatrend and the growing premiumization wave driv...