India’s biggest carmaker Maruti Suzuki wants every other car sold in the country to be from its stables, as the company eyes reclaiming a 50% market share as part of a new mid-term management plan for FY25-FY30. The company is also aiming to be the biggest producer, exporter and seller of electric vehicles (EVs) in the country, despite a delayed pivot to the EV segment where it is yet to commence any sales.
The company last commanded that level of market penetration in FY19, but has since ceded some ground to rivals like Tata, Hyundai and Kia. As of FY23, the company’s market share in India stood at 41.6%.
While the company noted it achieved revenue and profit targets ahead of schedule by improving sales mix and quality, its sales volume target could not be met.
“…the business environment has changed due to declining market share in India and intensified competition in electric vehicles. Need to rethink strategy,” the company said in a presentation.
Identifying India as its “most important market,” Maruti Suzuki is aiming to create a manufacturing capacity of producing 4 million cars annually to meet demand in India and use the country as a global export hub.
The company noted that the “competitive environment is becoming increasingly severe, and the quality of product functions, equipment and services required by customers is increasing”.
It plans to expand its EV lineup starting with the e Vitara, and is aiming to launch four new EV models by FY30. Some of its rivals, especially Tata Motors, already have a varied EV portfolio in India, and Maruti Suzuki would be a late entrant. However, India’s EV market is still nascent compared to some other countries, and Suzuki is hoping it can leverage its already large customer base and touch points.
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The company will also strengthen its product capabilities and lineup in the SUV and MPV segments, and look to “rapidly develop” and introduce entry segment products.
Maruti Suzuki will partner with FinDreams, a subsidiary of China’s BYD, to source batteries for EV cars. “In India, we will promote further localisation in line with the growth of the electric vehicle market,” it said.
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