Now Reading: Maruti Suzuki: small car market to grow faster, 6.1 mn target
-
01
Maruti Suzuki: small car market to grow faster, 6.1 mn target
Maruti Suzuki chairman RC Bhargava expects the Indian car industry to reach 6.1-6.3 million units by FY 2030-31, with the small car segment growing significantly faster than in the last five years.…
The Story in Brief
Maruti Suzuki chairman RC Bhargava expects the Indian car industry to reach 6.1-6.3 million units by FY 2030-31, with the small car segment growing significantly faster than in the last five years. He credited the GST rate cut for reviving the small car market, which grew 35% year-on-year in Q1FY27. The company recorded its highest-ever annual sales of 24.22 lakh vehicles and exports of 4.47 lakh units in FY26.
Managing director Hisashi Takeuchi said Maruti Suzuki added 5 lakh units of manufacturing capacity in FY26-27 and plans to launch seven SUVs in the next five to six years. The board approved an initial investment of Rs 561 crore for four biogas plants. CNG car sales rose 22% to 7.46 lakh units in FY26, and exports are expected to grow despite Middle East issues.
The Indian Opinion
The narrative that small cars are dying in India has been exaggerated. The GST cut has clearly revived the segment, but the real test is whether demand holds without further policy support. Maruti’s optimism about faster growth is welcome, but one-sided boosterism ignores pollution, congestion, and the need for equitable wealth creation. The question that will settle things: will small car sales in FY27 exceed pre-GST-cut levels by enough to justify the 6-million-unit forecast?
Sources (2): auto.economictimes.indiatimes.com, newindianexpress.com
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
