Maruti Suzuki Forecasts Car Industry Growth, Plans SUV Expansion
MUMBAI: Maruti Suzuki, the country’s largest carmaker, expects the car industry to grow to 6.1 to 6.3 million units by FY 2030-31, and the small car market, aided by GST reform, to grow significantly faster than in the last five years. India's domestic passenger vehicle (PV) sales reached a record 4.64 million (46,43,439) units in FY2025-26, up 7.9% year-on-year. “The sales of small cars grew 17% in the second half of last year but grew 35% in quarter 1 this year (Q1FY27) as more cars required by customers could be produced. Your company is in the process of making as accurate an estimate as possible of the likely growth of the car market in the next five years, a happy exercise necessitated by the GST reforms,” said RC Bhargava, Chairman, Maruti Suzuki India (MSIL) in his address to shareholders in the company’s latest annual report. He added, “This could lead to some changes in our longer-term targets. Presently, we are estimating that the car industry would grow to 6.1 to 6.3 million by FY 2030-31 and that the share of the small car market would grow significantly faster than what had happened in the last five years.” MSIL domestic sales stood at 19.74 lakh in FY26 while exports grew to 4.48 lakh units. To grow its presence in the fast-growing SUV market, MSIL plans to introduce 7 SUVs in the next 5 years. Managing Director and CEO Hisashi Takeuchi said that one of the most encouraging developments during FY 2025–26 was the revival of the small car segment led by GST reduction. “Small cars have historically democratised mobility in India and have served as the first step into car ownership for millions of families. Their recovery is important not only for the automobile industry, but also for expanding access to safer and more comfortable mobility across society,” added Takeuchi. Bhargava also highlighted the growing demand for CNG cars. In FY 2025-26, Maruti’s CNG car sales rose by 22% to 7.46 lakh cars and in the first quarter of this year sales grew by 58% to 2.2 lakh cars. MSIL has set a target to sell 9 lakh CNG cars in CY27. Bhargava also expects export volumes to increase from last year’s level, despite the problems in the Middle East. For MSIL, Japan has become its third-largest export market. He said that work has started at a new site in Sanand in Gujarat, and it is intended to install a total capacity of 1 million units there. As per the chairman, the proposed investment at the Sanand site is Rs 35,000 crores. As a result of the expansion projects, MSIL’s installed capacity would reach 2.9 million units at the end of FY 2026-27 and 3.65 million units at the end of FY 2030-31, he said. Bhargava urged the government, including the State governments, to proceed faster on the road of reforms and increase efforts to make doing business easier. “Faster creation of wealth, in the most efficient manner, is the only way that India can make up for the time that we have lost. This has been demonstrated by the automobile sector…My request to all political parties is to support reforms and programmes that create wealth. The government, and the opposition, should ensure that the additional resources that would be generated would be used to create a more equitable and just society,” he stated.
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