Maruti Suzuki India, India's leading car manufacturer, has unveiled ambitious plans to capture a dominant 50% market share. The company will pursue this goal through a multifaceted strategy focused on expanding production, strengthening its product portfolio, and aggressively entering the electric vehicle (EV) market.
This announcement follows a review of Suzuki Motor Company's current Mid-Term Management Plan (FY2021-FY2025). While the company achieved its revenue and profit targets ahead of schedule, thanks to improved sales mix, quality, and favorable exchange rates, it fell short of its sales volume goals. This, coupled with a declining market share in India and intensifying competition in the EV space, has prompted a strategic rethink.
India remains Suzuki's most crucial market, and the company views it as the engine for future growth. Recognizing the increasingly competitive landscape, Maruti Suzuki will enhance its product capabilities, particularly in the SUV and MPV segments, while also developing entry-level models for first-time buyers.
To meet the anticipated demand and become a global export hub, Maruti Suzuki is significantly expanding its production capacity and supply chain. New plants are being developed in Kharkhoda and Gujarat, with a target capacity of 4 million units annually. This expansion highlights the company's commitment to the Indian market and its global ambitions.
A cornerstone of Maruti Suzuki's strategy is its diverse powertrain approach. The company will offer a range of options, including BEVs, HEVs, CNG, and FFVs, tailored to the Indian market. It plans to launch four BEV models by FY2030, starting with the e-VITARA, and aims to be the leader in BEV production, exports, and sales in India.
Maruti Suzuki is also refining its sales channels. Nexa will focus on a premium customer experience, while Arena will cater to a broader audience.
Beyond India, Suzuki is also accelerating its electrification efforts in Japan, with plans to introduce six BEV models by FY2030, including the e-VITARA and a mini commercial van BEV in FY2025.
Finally, Suzuki has committed to achieving carbon neutrality in its global business activities (Scope 1 and 2 emissions), including India, by 2050. This aligns with the Paris Agreement's 1.5-degree Celsius goal. As an interim step, the company aims for a 42% reduction in emissions by FY2030 compared to FY2022.
Following the announcement, shares of Maruti Suzuki India were down 1.47% to Rs 12492.95.
Suzuki Motor Corporation holds 58.28% stake in Maruti Suzuki India.