Maruti Suzuki set to outpace industry growth in FY26 as parent firm bets big on India with 50% of global capex, ET Auto

Maruti Suzuki e VitaraJapanese auto giant Suzuki Motor Corporation (SMC) has projected a modest 1–2per cent growth in India’s passenger vehicle (PV) wholesale market for FY2025–26 but expects its Indian arm, Maruti Suzuki, to outpace industry growth, driven by a pipeline of new launches and aggressive capacity expansion.

Despite ongoing weakness in compact car demand, the company remains bullish on the Indian market, primarily due to the sustained demand for SUVs. In an investor presentation released Monday, SMC stated “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.”

SMC plans to launch two new SUVs in FY26 — including its first battery electric vehicle (BEV), the e-Vitara — a move expected to give Maruti Suzuki an edge and help it grow faster than the overall market, as news agency PTI reported.

To support this push, the company has allocated a capital expenditure of 380 billion yen for the fiscal year, with India accounting for nearly 50per cent of this investment. The capex will primarily be used to expand automobile production capacity.

Maruti Suzuki’s new manufacturing facility in Kharkhoda, Haryana, which started production in February 2024, will play a key role in ramping up output — particularly for high-demand models like the Brezza SUV. Earlier in March, Maruti’s board had approved Rs 7,410 crore to set up a third plant at the Kharkhoda site, with a proposed annual capacity of 2.5 lakh vehicles.

On the export front, Suzuki reported a significant increase of 50,000 units in FY2024–25, bringing total export volume to 3.33 lakh units, aided by market expansion in Africa and other global regions. Looking ahead, the company aims to solidify India’s role as a global hub for BEV production and exports, contributing to the Indian government’s ‘Make in India’ initiative.

The e-Vitara, Suzuki’s first electric model, is set for a global rollout in summer 2025, with initial sales in India, Europe, Japan, and other markets.

• Published On May 12, 2025 at 04:37 PM IST

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