Maruti Suzuki, a prominent name in the Indian auto industry, has reported strong growth numbers for the first quarter of the year. The company achieved record sales figures in April, May, and June, making it the highest-ever quarter one in the industry’s history. The demand for automobiles in the market has been stable, and Maruti Suzuki expects good volume numbers in the upcoming quarter as well. With the introduction of new cars, the company has outperformed the industry and gained market share. Maruti Suzuki has witnessed growth not just in the SUV segment, but also in the MPV segment, where it now holds a significant market share.
Maruti Suzuki acknowledges that it entered the seven-seater MPV/SUV segment relatively late, but it sees immense potential in this category. The SUV sector has experienced remarkable growth over the past few years, with a significant increase in market share. Maruti Suzuki’s market share in SUVs has risen from 8.5% in Q1 of last year to around 21-22% currently. The company has launched multiple SUVs like Vitara, Jimny, Fronx, and Brezza, along with its popular MPVs – the XL6 and Ertiga. These launches have helped Maruti Suzuki strengthen its overall market share and expand into new price segments.
Moving forward, Maruti Suzuki aims to position itself in the premium SUV/MPV segment. The company believes in catering to the needs of both traditional buyers and the emerging aspirational urban consumers. It has created the Nexa channel for high-end products that offer advanced technology and features. By addressing the requirements of both segments, Maruti Suzuki aims to strengthen its market presence.
While higher-priced vehicles generally provide better profit margins, it ultimately depends on the competition in that segment. Maruti Suzuki expects to see a shift in its product portfolio, with larger cars accounting for a larger share of sales in the coming months. Currently, small cars contribute to about 53% of the company’s sales, but this is projected to decrease to around 45-48% by the end of the year.
Maruti Suzuki is also focused on expanding its production capacity to meet future demands. The company already has a combined capacity of 21 to 22 lakhs across its manufacturing plants in Gujarat, Manesar, and Gurgaon. It plans to add an additional 2.5 lakh capacity with a new plant in Kharkhoda by 2025-26. By 2030-31, Maruti Suzuki aims to have a production capacity of 40 lakhs, including exports and OEM supply. To achieve this, the company is exploring the establishment of another plant that would add 10 lakh capacity.
Overall, Maruti Suzuki’s strong performance in the auto market, focus on new car launches, and plans for expanding production capacity underline its commitment to meet the evolving demands and preferences of Indian consumers.
