Maruti Suzuki one of the top car companies in India has disclosed its future game plan under the ‘Maruti Suzuki 3.0’ strategy. By FY2031 it plans to launch 6 new electric vehicles across segments.
Maruti Suzuki has planned to get 60% of sales from upcoming EVs, 25% sales from Hybrid models, and 15% sales from alternate fuels such as CNG, Flex Fuel, Biogas, etc.
Maruti Suzuki has a current 2.25 million units of manufacturing capacity and aims to categorically expand to around a million units by FY2031.
The company has already started working on its new manufacturing plant in Kharkhoda, Haryana. This new Kharkhoda plant will become the first plant to be empowered by the company which will bear the manufacturing capacity of millions of vehicles in one place.
The Indian car brand showcased the WagnoR Flex Fuel prototype in December 2022 which could work ethanol blending range of 20% to 85%.
Maruti India will launch its first flex fuel vehicle by 2025 and its first Electric Vehicle will launch in FY2024-2025.
Delhi Motor Show was held in January 2023 where a prototype of Maruti’s electric vehicle was showcased.
This EV is a mid-segment SUV with a range of 550km and a battery capacity of 60 KWH. The production facility is been set in Suzuki Motor Gujarat where this EV will be manufactured.
SMC is setting up a plant in Gujarat for EV battery manufacturing said by MD and CEO, H Takeuchi Maruti Suzuki India.
Bullishness on Domestic and Export Leadership
“In his message to shareholders, R C Bhargava, the Chairman of Maruti Suzuki India, mentioned that while semiconductor shortages continued to affect production, the impact was somewhat reduced.
He anticipates further improvements in the current year, although a complete return to normalcy in supplies is not expected. The company now boasts four highly popular SUVs in the market and is on track to become a leader in this segment.
Bhargava expressed the intention to gradually regain market share, which had experienced a decline in the past 2-3 years. Recognizing the limited prospects for a recovery in demand for smaller entry-level cars to previous growth rates, Maruti Suzuki is undergoing a restructuring of its production facilities to align with current realities and future projections.”
“Despite the decline in the hatchback and small car segment, these vehicles will continue to be a crucial component of our overall product lineup.
While the anticipated annual growth rate for these cars is less than 2 percent, the industry’s total volume is nearly a million cars annually, with Maruti Suzuki India holding a substantial market share of around 70 percent.”
“Although we don’t foresee the automotive industry experiencing double-digit growth, similar to China’s historical trend, we anticipate a sustained growth rate of 6 percent until the fiscal year 2030-31.
This projection takes into account not only the increasing domestic demand but also an optimistic outlook for export opportunities. In the previous year, our exports reached 259,000 units, and we anticipate a continuous upward trend. We project export volumes to reach between 750,000 and 800,000 cars by the fiscal year 2030-31.”
“Due to the combined demand from both domestic and export markets, Maruti Suzuki finds it imperative to increase its manufacturing capacity by an additional 2 million units. Construction is underway at the initial location in Kharkhoda, Haryana, and it is anticipated that the first plant with a capacity of 250,000 units will commence production in the first half of 2025. Subsequently, one comparable plant will be established each year, aiming to achieve a total capacity of one million units. Simultaneously, the company is in the process of identifying a second site to augment capacity by an additional one million units by the fiscal year 2030-31.”
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