Maruti Suzuki India presented its strategic roadmap, emphasizing India’s growing demand driven by rising income levels and demographic dividends. The company achieved a record high of 2.1 million units in FY 24-25 and targets an annual production capacity of around 4 million units by FY2030. Key focuses include expanding the SUV lineup, strengthening the multi-pathway fuel strategy (BEV, HEV, CNG), and capitalizing on the recent favorable GST revisions to capture first-time buyers.
Introduction and India Business Overview
Maruti Suzuki India shared an update on its business, led by Managing Director & CEO Hisashi Takeuchi. The company noted that the Indian automotive market has demonstrated robust growth, with FY 24-25 production hitting a record 2.1 million units (6% YoY growth). The passenger car market saw overall growth, with Maruti Suzuki maintaining a significant market share of 40.6% in FY 24-25.
Household Income Trends and Demographic Dividend
The presentation highlighted promising future trends. The largest demand expansion is projected for the middle-income segment (INR 500-3,000 thousand), growing from 91 million households in 2020-21 to an estimated 165 million by 2030-31. Furthermore, India has entered a critical phase of demographic dividend, with the dependency ratio projected to stay below 50% until 2055, supporting sustained consumption-led growth.
India Strategy Under Medium-Term Management Plan
The strategy, titled “By Your Side,” focuses on developing India as a global manufacturing base through multiple pathways:
- Mobility: Expanding offerings across all income segments, including premium-oriented NEXA/ARENA SUVs/MPVs and introducing entry cars for first-time buyers.
- Multi-Pathway: Aiming for carbon neutrality via BEV, HEV, CNG, Biofuel (CBG), and FFV options, aligning with the NITI Aayog’s recommendations.
- Circular Economy: Establishing systems like ELV collection/disassembly through the joint venture, Maruti Suzuki Toyotsu India Private Limited (MSTI).
Review of Recent Financial Performance (9M FY25-26)
Reviewing performance up to the third quarter of FY25-26, Maruti Suzuki demonstrated steady growth despite market shifts:
- Net Sales (9M FY25-26): INR 1,243.0 billion, compared to INR 1,062.7 billion in the same period last year.
- Operating Profit (9M FY25-26): INR 102.9 billion.
A key event influencing Q3 performance was the GST revision in September 2025, which resulted in vehicle price reductions, subsequently increasing the proportion of first-time buyers from 41% to 48% in the post-reform period.
Key Initiatives and Expansion
Strengthening Production Base
The capacity target is set to reach around 4 million units annually by after FY2030. This involves capacity additions across existing plants and the planned New Gujarat Plant starting operations from FY2028. The Kharkhoda Plant started production in February 2025.
Product Portfolio Focus
Maruti Suzuki is aggressively expanding its SUV offerings, which saw the launch of the award-winning “Victoris” in September 2025. MSIL’s SUV market share increased to 19.6% in FY 25-26 (Apr’25-Feb’26), with 7 new SUVs planned over the next 5-6 years.
Promoting Multi-Pathway and CNG
The company is heavily promoting CNG, with its sales share reaching 39% in 9M FY25-26. Furthermore, the biogas business initiative saw the opening of the first BANAS SUZUKI BIOGAS PLANT in December 2025, with a second plant opening in January 2026, contributing to India’s carbon neutrality goals.
Export Growth
Exports are a growing focus area. In fiscal 2024, exports hit a record 333,000 units. Shipments to Japan alone soared by 480% in fiscal 2025 (to 44,000 units).
Source: BSE
