Key facts
- India's largest carmaker, Maruti Suzuki India, forecasts the domestic passenger vehicle market to reach 6.1 million-6.3 million units by fiscal year 2030-31.
- Growth is expected to be fueled by a revival in demand for small cars and a stronger sport utility vehicle (SUV) segment.
- Maruti plans to invest approximately 350 billion rupees ($4 billion) to boost its annual production capacity to 3.65 million vehicles by FY31.
- The company intends to launch seven new SUVs within the next five to six years to enhance its market presence.
- Maruti is also investing in clean energy by setting up four biogas plants.
Maruti Suzuki India, the country's largest automaker, anticipates a significant expansion of the domestic passenger vehicle market, projecting it to reach between 6.1 million and 6.3 million units by the fiscal year 2030-31. This forecast, shared by Chairman R.C. Bhargava, is underpinned by an expected resurgence in demand for smaller cars and continued strength in the sport utility vehicle (SUV) segment.
The company is revising its five-year growth objectives, noting that the small-car segment is poised for more substantial growth than observed in the preceding five years. This outlook was detailed in a statement accompanying Maruti's 2025/26 annual report.
In the fiscal year 2026, Maruti achieved a record sale of 2.42 million vehicles and an all-time high export volume of 447,000 units. The company is on track to reach its next million-unit sales milestone sooner than initially projected.
To support this anticipated growth, Maruti plans a substantial investment of approximately 350 billion rupees ($4 billion) aimed at increasing its annual production capacity to 3.65 million vehicles by FY31. This includes an accelerated expansion by adding 500,000 units of manufacturing capacity in FY27.
Furthermore, Maruti is diversifying its strategy with an investment of 5.61 billion rupees to establish four biogas plants, aligning with its clean-energy initiatives and India's net-zero objectives. Bhargava highlighted that biogas could decrease reliance on imported compressed natural gas.
Managing Director and CEO Hisashi Takeuchi announced plans to introduce seven new SUVs over the next five to six years, reinforcing the company's position in the rapidly expanding SUV market.
Maruti is also focusing on enhancing its resilience by prioritizing localization, exploring alternative sourcing strategies, and developing supplier capabilities to mitigate geopolitical and supply-chain risks. The company also noted a closer, more integrated relationship with its parent, Suzuki Motor Corp, which is expected to shorten vehicle development cycles and reduce costs.