Maruti plots extensive journey with 10 fresh models over 7-year span

Maruti Suzuki announced on Saturday that it plans to launch 10 new models, including six electric vehicles, within the next seven years. The carmaker aims to double its total sales to four million units per year. The company is currently expanding its production capacity and is in the process of establishing its largest manufacturing facility with a capacity of one million units in Kharkhoda, Haryana. Another factory with a one million unit capacity is also being planned. Maruti Suzuki chairman R C Bhargava referred to this as the beginning of “Maruti 3.0” in the company’s annual report. He emphasized the challenge of not only producing four million cars a year, but also selling this number. Bhargava estimated that the company could have about 28 different models by FY 2030-31.

Maruti Suzuki currently has 18 vehicles available for sale in the country. In the last financial year, the company’s total sales increased by 19% to 1.97 million units, with 259,333 units being exported to 100 countries. Bhargava expressed optimism about India’s future outlook as the fastest-growing major economy in the world.

Maruti Suzuki has been collaborating with its parent company, Suzuki Motor Corporation, to strengthen its product portfolio and adapt to changing market conditions. The company has recently launched four SUVs in the domestic market and aspires to assume leadership in this segment. However, Bhargava acknowledged that demand for smaller entry-level cars is unlikely to recover to previous growth rates. Despite this, hatchbacks and small cars will remain an important part of Maruti Suzuki’s portfolio. Bhargava expects the industry to grow at about 6% until FY31 and anticipates slightly higher growth for Maruti Suzuki due to demand for its new SUV launches.

In addition to domestic demand, the company expects export prospects to continue improving. Bhargava projected export volumes to reach 750,000-800,000 cars by FY 2030-31. Maruti Suzuki also plans to enter the electric vehicle market, with the launch of its first EV model expected in the next financial year. By FY 2030-31, the company aims to have six EV models, which will account for 15-20% of its total sales.

Bhargava stressed the importance of a mix of technologies in achieving carbon neutrality in the transportation sector in India. He emphasized the utilization of animal waste, agricultural waste, and land resources, as well as the use of hybrid technology, ethanol, compressed biogas, and CNG in cars.

The company’s board recommended increasing the dividend for 2022-23 to ₹90 per share, the highest yet, based on the record revenues and profit achieved in the last fiscal year.