Suzuki Aims for 3 Million Passenger Vehicle Sales in India by 2030
Written by Sanjay Kumar
Suzuki Motor Corporation (SMC), the renowned Japanese automaker, has set an ambitious target to achieve 3 million passenger vehicle sales in India by 2030, reinforcing its commitment to the Indian market. This vision comes alongside plans to double its manufacturing capacity in India, increasing it to 4 million units within the next decade.
Suzuki’s aspiration aligns with its anticipation that India’s total passenger vehicle market will witness remarkable growth, reaching 6 million units by 2030, compared to just over 4 million units in the fiscal year 2023-24. Maruti Suzuki India Ltd, the largest car company in India and a subsidiary of SMC, has set its sights on attaining a 50% market share by 2030, a substantial increase from its current nearly 42%. Notably, 15% of its sales will originate from battery electric vehicles (BEVs).
In contrast to other domestic original equipment manufacturers (OEMs), who project a more substantial embrace of electric vehicles by 2030, with figures ranging from 25% to 30% of total passenger vehicle sales, Maruti Suzuki is placing a more substantial bet on hybrid vehicles. They anticipate that hybrids will account for 25% of their sales by the end of the decade.
Maruti Suzuki plays a pivotal role in Suzuki Motor Japan’s global business, contributing significantly to the company’s financial performance. In the fiscal year 2021-22, India accounted for 39% of SMC’s total global revenue, amounting to 1,788 billion yen, followed by Japan at 1,212 billion yen. Other global markets in Asia, Europe, and America collectively contributed 1,641 billion yen.
Maruti Suzuki has also established itself as a leading manufacturer of Compressed Natural Gas (CNG)-fitted vehicles in India, commanding a substantial 74% of the CNG passenger vehicle market.
In the quarter ending in June 2023, Maruti Suzuki’s introduction of new sports utility vehicles (SUVs) in India further boosted sales. Price increases to counter inflation, a more diverse product mix resulting from the introduction of new SUV models in India, increased sales volume compensating for semiconductor-related production challenges, and currency exchange rate dynamics all contributed to higher net sales.
Suzuki recently unveiled the eVX, its first global electric vehicle, set to launch in India during the 2023-24 fiscal year. This initiative demonstrates the company’s commitment to electric mobility in the Indian market.
Maruti Suzuki’s upcoming production facility in Kharkhoda, Haryana, is expected to commence operations in 2023-24, providing a substantial boost to its production capacity, with the capability to produce an additional 1 million units. Furthermore, the automaker is actively searching for a new production site to accommodate another 1 million units in capacity by 2030, reflecting growing domestic and export demand.
Suzuki is also banking on significant export growth from India. Over the last five years, the company has witnessed a 2.3-fold increase in exports from India. Meeting the projected export volume of around 800,000 units by 2030-31 will necessitate substantial investment in infrastructure and support services.
In July, Maruti Suzuki announced its decision to restructure its India manufacturing operations by acquiring full ownership of Suzuki Motor Gujarat (SMG), its contract manufacturing partner, from parent Suzuki Motor Corp.
Suzuki’s strategic moves and commitment to the Indian market signify its dedication to growth and prominence in one of the world’s most promising automotive markets.
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