Maruti Suzuki expects India’s passenger vehicle market to expand sharply by FY31, with small cars and SUVs driving growth. The carmaker is reassessing its targets, while stepping up capacity, investments, localisation and its SUV pipeline.
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NEW DELHI, Aug 9: India’s largest carmaker, Maruti Suzuki India, expects the domestic passenger vehicle market to grow to 61 lakh-63 lakh units by fiscal year 2030-31, driven by a revival in demand for small cars and a stronger sport utility vehicle segment, Chairman R.C. Bhargava said.
Maruti is reassessing its five-year growth targets as it expects the small-car segment to expand significantly faster than in the past five years, the company said in a statement on Sunday, accompanying its 2025-26 annual report.
Key points:
- Maruti sold a record 24.2 lakh vehicles and exported an all-time high 4.47 lakh units in FY26, and expects to reach its next million-unit sales milestone earlier than previously projected.
- The company plans to invest about ₹35,000 crore to raise annual production capacity to 36.5 lakh vehicles by FY31.
- Maruti’s board has approved an initial investment of ₹561 crore to set up four biogas plants as part of its clean-energy strategy. Bhargava said biogas could reduce dependence on imported compressed natural gas and support India’s net-zero goals.
- Managing Director and CEO Hisashi Takeuchi said Maruti plans to launch seven new SUVs over the next five to six years to strengthen its presence in the fast-growing segment.
- The company accelerated capacity expansion by adding 5 lakh units of manufacturing capacity in FY27.
- Maruti is prioritising localisation, alternate sourcing and supplier capability development to mitigate geopolitical and supply-chain risks.
- Maruti said its relationship with parent Suzuki Motor Corp has become “closer and more integrated”, helping shorten vehicle development cycles and reduce costs.
(Edited by : Sheersh Kapoor)
