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Maruti Suzuki plans Rs 77,500 crore investment, backs small cars
Maruti Suzuki plans to spend a lot of money expanding its car business over the next five years.
It will use the money to build more factories, create new models and improve its technology.
The company thinks more people in India will buy cars by 2031.
Small cars are becoming popular again, so Maruti wants to keep focusing on them.
It also plans to make more SUVs and electric vehicles.
Its first electric car, the e Vitara, has sold well in overseas markets but has faced production limits in India.
CNG cars are also selling strongly, and Maruti is considering compressed biogas as another fuel.
The company expects to export about 480,000 vehicles in FY27.
Maruti Suzuki plans to invest Rs 77,500 crore between FY27 and FY31 across capacity, models, research, infrastructure and sustainability.
The company expects production capacity to rise from current levels to 2.9 million vehicles by FY27 and 3.65 million by FY31.
Maruti is reassessing its long-term targets after GST reforms and expects India’s passenger-vehicle market to reach 6.1-6.3 million units by 2031.
Small-car sales accelerated sharply, while the company is also expanding its SUV, electric-vehicle and CNG portfolios.
Maruti expects exports of about 480,000 vehicles in FY27 after exporting more than 440,000 vehicles in FY26.
- Who
- Maruti Suzuki, led by Chairman RC Bhargava and Managing Director and CEO Hisashi Takeuchi.
- What
- The carmaker announced a planned Rs 77,500 crore investment through FY31 and revised plans for production, small cars, SUVs, EVs, CNG vehicles and exports.
- Where
- The plans concern Maruti Suzuki’s operations in India and its export markets, including Japan.
- When
- The investment will be made between FY27 and FY31; the announcement was made at the company’s annual general meeting on Monday.
- Why
- The company is preparing for expected growth in vehicle demand, a recovery in small-car sales and changing market conditions following GST reforms.
Small-Car Focus
SUV and Premium Expansion
Product strategy
Small-Car Focus
Maruti Suzuki management expects small-car demand to grow considerably faster over the next five years and is retaining its leadership in the segment.
SUV and Premium Expansion
Some shareholders raised concerns about Maruti’s relatively weaker presence in larger SUVs and premium MPVs, prompting management to emphasize continued SUV expansion.
Key facts
- Planned investment
- Rs 77,500 crore between FY27 and FY31
- FY27 capital expenditure
- Rs 14,000 crore, up from Rs 10,000 crore in FY26
- Production capacity
- Expected to reach 2.9 million vehicles by FY27 and 3.65 million by FY31
- Projected passenger-vehicle market
- 6.1-6.3 million units in India by 2031
- FY27 export target
- Around 480,000 vehicles
- CNG target
- Around 900,000 vehicles in FY27
- Small-car market position
- Maruti Suzuki holds an 83% share of the small-car segment
Quotes
RC Bhargava
Chairman of Maruti Suzuki
“The company is in the process of making as accurate an estimate as possible of the likely growth of the car market in the next five years, a happy exercise necessitated by the GST reforms. This could lead to some changes in our long-term production and sales targets.”
financialexpress.com
Sources
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