NEW DELHI, August 9 (Reuters) – Maruti Suzuki India, the nation’s leading automaker, anticipates a significant expansion of the domestic passenger vehicle market to between 6.1 million and 6.3 million units by fiscal year 2030-31. This projected growth is primarily attributed to a resurgence in demand for compact vehicles and a robust performance from the sport utility vehicle (SUV) segment, as articulated by Chairman R.C. Bhargava.
In a statement released Sunday, accompanying its 2025/26 annual report, Maruti announced a reassessment of its five-year growth objectives, driven by the expectation that the small-car segment will experience considerably faster expansion than observed over the preceding five-year period.
**Key Highlights:**
• In FY26, Maruti achieved record sales of 2.42 million vehicles and an unprecedented 447,000 units in exports. The company now anticipates reaching its next million-unit sales milestone ahead of its prior projections.
• A substantial investment of approximately 350 billion rupees ($4 billion) is earmarked to elevate annual production capacity to 3.65 million vehicles by FY31.
• Maruti’s board has sanctioned an initial investment of 5.61 billion rupees for the establishment of four biogas plants, aligning with its clean-energy strategy. Bhargava highlighted that biogas production could mitigate dependence on imported compressed natural gas and contribute to India’s net-zero objectives.
• Managing Director and CEO Hisashi Takeuchi disclosed plans for Maruti to introduce seven new SUV models over the next five to six years, aiming to solidify its market position within this rapidly expanding segment.
• The company has expedited its capacity expansion initiatives, including the addition of 500,000 units of manufacturing capacity in FY27.
• Maruti is prioritizing strategic localization, diversifying sourcing options, and fostering supplier capability development to effectively navigate geopolitical and supply-chain challenges.
• The company noted that its collaboration with parent company Suzuki Motor Corp has become “closer and more integrated,” which has been instrumental in shortening vehicle development cycles and optimizing costs.
(Reporting by Aditi Shah and Manoj Kumar; Edited by Lincoln Feast.)
