Maruti Suzuki targets 50% market share, #1 EV manufacturer

By fiscal 2030, Maruti Suzuki plans to launch 4 BEV models that will contribute about 15% to the company’s overall sales

Suzuki announced a new mid-term management plan for fiscal 2025-2030, which highlights strategies for a variety of global markets, including India. The sales target (FY2030) is set to 4.2 million units, while the operating profit target is 700 billion yen (Rs 40,644 crore). India will continue to be the company’s largest contributor to global sales and growth.

Maruti India’s 5-year business strategy

Maruti’s market share has been below 50% for some time due to the growth of competition. Maruti now intends to retake that position by fiscal 2030. Even if competition in the electric vehicle sector will intensify over the next few years, the company seems confident. Previously, Maruti plans to launch six new BEV models in India at the end of this decade. But the medium-term plan shows that India will introduce only four new BEV models by fiscal 2030.

Maruti’s first electric vehicles in India will be Evitara. The other three models may include an entry-level EV, which features competitors such as the Tata Tiago EV. Electric MPV (codenamed YMC) is also under development. Maruti’s product plan shows that the ICE model (gasoline + ethanol mix + CNG) will contribute about 60% of total sales in fiscal 2030. The contribution of BEV will be 15%, while HEV will generate about 25% of sales.

Suzuki aims to electrify more in other markets, for example, with BEV sales in Europe of 45%. The goal of HEV is to contribute 55% in Europe. For Japan’s domestic market, Suzuki’s target is 20% BEV and 80% HEV sales. Four BEV models are planned to be used in Europe and six in Japan. Despite the increasing competition, Maruti Suzuki aims to be the number one in the production, export and sales of BEVs. This means that India will become the main production and export hub of BEV.

Sales/profit targets

For fiscal year 2030, the sales target is set at 4.2 million units. India will continue to be the largest market with a target donation of 2.54 million vehicles. This is more than 60% of the brand’s global sales. To meet rising demand in the domestic and export markets, Maruti will expand its supply chain and production capacity (new Kharkhoda Plant and New Gujarat plants). When needed, India’s production capacity will gradually increase to 4 million units per year.

Giant investment plan

To achieve the targets for fiscal 2025 to fiscal 2030, Suzuki announced a capital investment of 200 billion yen (Rs 1.16 crore). Of this, the Indian market is only 1.2 billion yen (Rs 69676 crore). These funds will be used for various purposes, such as the development of new models and the expansion of production capacity.

The funds will also be used for carbon neutral targets, quality measures, efficiency measures, points of sale, test equipment, etc. Suzuki also allocated 200 billion yen for research and development. The R&D plan will focus on tasks such as technology development to achieve energy minimization, future technology development, new business opportunities and infrastructure investment.