Source: The Economic Times
India’s passenger vehicle (PV) market is likely to grow by 1–2% in FY26, led predominantly by SUVs’ sustained demand. But the Japanese company Suzuki Motor Corporation (SMC) said on Monday in Delhi that the Indian subsidiary Maruti Suzuki will do better than the industry growth on the strength of new model launches, higher exports and an expanded manufacturing capacity.
On the Overview for FY2025-26 in India, Suzuki Motor Corporation (SMC) in an investor presentation said, “Although SUVs continue to be strong in the market, demand for compact cars continues to be sluggish, and the overall market for wholesale sales is expected to grow by (around) 1 to 2 per cent.”
It further added, “With the launch of two new SUVs, including the BEV e VITARA, our company plans to outpace market growth.”
Capacity Expansion and Investments
SMC said it has earmarked “capital expenditures of 380 billion yen, of which investments in India will account for approximately 50 per cent, with plans to increase production capacity of mainly automobiles” of it with plans to increase production capacity of passenger vehicles.
Central to this growth is the recently-opened 1.5 million units a year plant of Maruti Suzuki in Haryana state’s Kharkhoda, which opened in February 2025, “to increased production and sales of the popular SUV Brezza”, it added.
Export Growth and EV Ambitions
Maruti Suzuki too saw a substantial increase in exports in FY25, which rose by 50,000 units to 3.33 lakh units. The firm broadened its export destinations to Africa and other markets overseas. “As well as being a global production and export base for battery EVs, the company will contribute to the Make in India initiative of the Indian government by expanding global exports while flexibly responding to the increase in demand in India as it works to build a system to produce 4 million units in India,” SMC noted.
Looking Ahead
With a particular emphasis on SUVs, electric mobility and infrastructure investment, Maruti Suzuki is seeking to maintain its leading PV market position in India. Although the small car segment is facing headwinds and the industry growth forecast is conservative, the company’s aggressive stance indicates that it is ready to outshine the overall market in the next fiscal.
