Suzuki Motor Corporation (SMC) of Japan said that it expects to sell 3 million passenger vehicles in India, its single-largest market, by 2030, while also repeating plans to expand its production capacity in the country to 4 million units over the following decade.
It anticipates that India’s entire passenger car market would have grown to 6 million units by then, up from slightly more than 4 million units in 2023-24. Maruti Suzuki India Ltd, India’s largest automobile maker and SMC’s local branch, aims for a 50% market share by 2030, up from around 42% now, with battery electric vehicles (BEVs) accounting for 15% of sales.
While most domestic original equipment manufacturers (OEMs) expect electric vehicle adoption to range from 25% to 30% of total passenger vehicle sales by 2030, Maruti’s bet is on hybrid vehicles, which it expects to account for a quarter of its sales by the end of the decade. Maruti Suzuki is essential to Suzuki Motor Japan’s global business—in 2021-22, India accounted for 39% of SMC’s total global sales at 1,788 billion yen, followed by Japan at 1,212 billion yen and other global markets in Asia, Europe, and America at 1,641 billion yen.
Maruti Suzuki is also India’s major manufacturer of CNG-fitted vehicles, accounting for 74% of the overall CNG passenger vehicle market.
Maruti Suzuki’s introduction of new sports utility vehicles (SUVs) in India in the quarter ending June 2023 helped volumes and India’s contribution to SMC. “Net sales increased due to price increases in response to inflation, mix improvements resulting from the introduction of new SUVs in India, increased sales volume due to mitigating impact of production cuts due to a shortage of semiconductors, and the impact of foreign exchange rates,” the company stated in its financial report.
At the Japan Mobility Show, Suzuki unveiled the eVX, the company’s first worldwide EV, which would be available in India in 2023-24. Maruti Suzuki unveiled the worldwide concept initially in India, at the Auto Expo 2023.
Maruti Suzuki’s new production plant in Kharkhoda, Haryana, will commence operations in 2023-24, ultimately increasing capacity by one million units. Separately, the automaker has stated that it will select a new production site to install an extra 1 million units of capacity by 2030 as local and export demand rises.
Suzuki is banking on robust export growth from India, which it claims has increased 2.3 times in the previous five years. “We need to build infrastructure to meet the increasing demand for our vehicles outside of India.” We anticipate an export volume of roughly 800,000 by 2030-31. This is a different sequence than we have now. To meet this demand, a significant amount of infrastructure and support services would be required, and all of this will necessitate significant investment, according to R.C. Bhargava, chairman of Maruti Suzuki, in an earlier interview with media.
Maruti Suzuki stated in July that it will reorganize its India manufacturing operations by purchasing contract manufacturing partner Suzuki Motor Gujarat (SMG) from parent Suzuki Motor Corp.
Maruti Suzuki automobiles are known for their affordability and practicality, making them a popular option among car purchasers. The firm has a solid reputation for producing automobiles that are economical not just in terms of purchase price but also in terms of maintenance costs. Maruti Suzuki has a 41.6% market share in India. It is also India’s largest automaker. Sales for the calendar year 2022 totaled 15.76 lakh units.
Maruti Suzuki India Limited (previously Maruti Udyog Limited) is Suzuki Motor Corporation’s Indian affiliate. As of September 2022, the business has a 42 percent market share in the Indian passenger automobile industry. The firm is well-known for producing low-maintenance automobiles for the Indian market.
