Maruti Suzuki plans 7 SUVs as India's car market grows
What's the story
Maruti Suzuki, India's largest car manufacturer, expects the country's passenger vehicle market to grow to 6.3 million units by FY31. The growth is expected to be driven by a revival in demand for small cars and the continued popularity of SUVs (Sport Utility Vehicles). The company's chairman R.C. Bhargava made this prediction while announcing their annual report for FY26.
Strategic shift
Rapid growth expected in small-car segment
Maruti Suzuki is re-evaluating its five-year growth targets, anticipating that the small-car segment will grow much faster than it did in the last five years.
This change in strategy could give Maruti more room to ramp up sales and production.
Maruti Managing Director and CEO Hisashi Takeuchi said the carmaker plans to launch seven new SUVs over the next five to six years.
The company has already expanded its SUV portfolio with models like Grand Vitara, Brezza, and Fronx.
Expansion plans
Maruti plans to invest ₹35,000 crore by FY31
To meet the expected surge in demand, Maruti Suzuki plans to invest ₹35,000 crore ($4 billion) to ramp up its annual production capacity to 3.65 million vehicles by FY31.
The company has also fast-tracked its capacity expansion plans by adding an additional 500,000 units of manufacturing capacity in FY27.
This comes after Maruti reported record vehicle sales of 2.42 million units and exports at an all-time high of 447,000 units during FY26.
Supply chain strategy
Focus on localization and alternative sourcing
Maruti Suzuki is also focusing on localization and alternative sourcing to mitigate risks from geopolitical tensions and global supply-chain disruptions.
The company plans to strengthen supplier capabilities and increase local sourcing as it expands production.
This strategy is part of Maruti's broader plan to prepare for the next phase of growth in India's passenger vehicle market, which it expects will be driven by a revival in small-car demand and continued SUV growth.
Corporate synergy
Strengthening ties with parent company Suzuki Motor Corporation
Maruti Suzuki has also strengthened its integration with parent company Suzuki Motor Corporation.
This closer relationship is expected to help the Indian carmaker shorten vehicle development cycles and lower costs.
The company's board has approved an initial investment of ₹561 crore to set up four biogas plants as part of its clean-energy strategy.