Japan’s Suzuki Motor Corporation (SMC) has set ambitious goals for its operations in India, its single-largest market. The company aims to achieve sales of 3 million passenger vehicles in India by 2030, emphasizing its commitment to expanding manufacturing capacity in the country. SMC plans to double its manufacturing capacity in India to 4 million units over the next decade. The company’s optimism is fueled by expectations that India’s total passenger vehicle market will grow to 6 million units by 2030, up from just over 4 million units in the 2023-24 period.
India’s largest car manufacturer, Maruti Suzuki India Ltd, a local arm of SMC, is striving to achieve a 50% market share by 2030, up from its current market share of nearly 42%. The company aims for 15% of its sales to come from battery electric vehicles (BEVs), contributing to the Indian government’s ambitious electric vehicle adoption goals.
While many domestic original equipment manufacturers (OEMs) are planning for electric vehicle adoption to account for 25% to 30% of total passenger vehicle sales by 2030,
Maruti Suzuki’s strategy leans more towards hybrid vehicles. The company anticipates that hybrid vehicles will make up 25% of its sales by the end of the decade. In 2021-22, India accounted for 39% of SMC’s total global revenue, followed by Japan at 1,212 billion yen. Maruti Suzuki is central to Suzuki Motor Japan’s global business, with a significant presence in the Indian market.
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Maruti Suzuki is also the leading manufacturer of CNG-fitted vehicles in India, making up 74% of the total market for CNG passenger vehicles. The introduction of new sports utility vehicles (SUVs) in India by Maruti Suzuki in the quarter ending June 2023 contributed to the company’s growing volumes and its importance to SMC. Suzuki cited price increases, improvements in product mix due to new SUV launches, increased sales volumes, and the impact of foreign exchange rates as reasons for increased net sales.
As part of its expansion plans, Maruti Suzuki has unveiled the eVX, Suzuki’s first global EV set to launch in India in 2023-24. Operations at Maruti Suzuki’s new production facility in Kharkhoda, Haryana, will commence in 2023-24, adding a 1 million unit production capacity boost. The company is also identifying a new production site to add another 1 million units in capacity by 2030 to meet rising domestic and export demand.
Suzuki is anticipating significant export growth from India, with exports from the country having grown 2.3 times over the last five years. To cater to this rising demand, significant investments in infrastructure and support services will be necessary. R.C. Bhargava, chairman of Maruti Suzuki, emphasized that meeting this demand will require substantial investment in infrastructure. In July, Maruti Suzuki announced its plan to restructure its manufacturing operations in India by acquiring full control of Suzuki Motor Gujarat (SMG), its contract manufacturing partner, from parent Suzuki Motor Corp. This move is expected to provide greater autonomy and flexibility to the Indian subsidiary.
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Featured image courtesy Atharva Dhuri
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