MARUTI SUZUKI SEES INDIA AUTO MARKET REACHING 6.3M VEHICLES BY 2031

Maruti Suzuki India expects the country’s passenger vehicle market to reach as many as 6.3 million units annually by fiscal 2030-31, helped by recovering demand for small cars and continued growth in sport utility vehicles.

India’s largest automaker forecast annual industry sales of 6.1 million to 6.3 million vehicles by FY31, Chairman R.C. Bhargava said in the company’s annual report.

Maruti is reassessing its five-year targets because it expects small-car sales to grow considerably faster than during the past five years.

The company sold a record 2.42 million vehicles in FY26, including an all-time high 447,000 exports.

Maruti expands capacity

Maruti plans to invest about 350 billion rupees, or $4 billion, to increase annual production capacity to 3.65 million vehicles by FY31.

The company accelerated its expansion by adding 500,000 units of manufacturing capacity in FY27 and now expects to reach its next million-unit sales milestone earlier than previously projected.

Maruti also plans to introduce seven SUVs during the next five to six years as it seeks a larger share of one of India's fastest-growing vehicle categories.

For investors, Maruti's outlook points to substantial growth opportunities in an Indian auto market that could exceed 6 million annual passenger-vehicle sales by the end of the decade. The company's $4 billion capacity expansion, aggressive SUV rollout and expected recovery in small cars position it to participate in that growth. The investment program also raises the stakes for demand to meet expectations, however, as Maruti commits substantial capital to factories and new models several years ahead of projected sales.

Supply chains and clean energy

Maruti is increasing localization, developing alternative suppliers and strengthening its supplier network to reduce exposure to geopolitical and supply-chain disruptions.

Its relationship with parent Suzuki Motor (SZKMY)(SZKMF) also has become more integrated, helping reduce development times and costs.

Maruti is investing in alternative energy as well. Its board approved an initial 5.61 billion rupees for four biogas plants, part of an effort to reduce reliance on imported compressed natural gas and support India's emissions goals.

The expansion plans reflect Maruti's expectation that India's auto market still has considerable room to grow, with the company betting on both ends of the market: a revival in affordable small cars and continued consumer migration toward SUVs.

2026-08-09T17:07:18Z