Maruti Suzuki India Ltd. Chairman R. C. Bhargava has announced a significant shift in India's automotive landscape, predicting that the small car market is poised for substantially faster growth over the next five years. This outlook suggests a potential reversal for a segment that has seen declining sales in recent years as consumers gravitated towards larger vehicles like SUVs.
Bhargava, in Maruti Suzuki’s Annual Integrated Report 2025-26, stated that the company expects the overall passenger vehicle industry in India to expand to between 6.1 and 6.3 million units by the financial year 2030-31. This growth trajectory is anticipated to be driven notably by the resurgence of the small car segment.
Maruti Suzuki's Strategic Expansion
Despite the renewed focus on small cars, Maruti Suzuki is not neglecting the booming SUV market. Managing Director and CEO Hisashi Takeuchi confirmed plans to introduce seven new SUV models over the next five to six years, reflecting an accelerated capacity expansion to meet evolving customer expectations. The company recently added 500,000 units to its manufacturing capacity during FY 2026-27.
In the last fiscal year, Maruti Suzuki achieved record annual sales of 2.42 million vehicles, marking the third consecutive year it surpassed the 2 million sales milestone. Exports also hit a new high of 447,000 vehicles in FY26, positioning the company optimistically to reach its next million-vehicle target sooner than initially projected.
Investment in Green Energy
Beyond vehicle sales, Maruti Suzuki is also making strides in sustainable energy. The company's board has approved an initial investment of Rs 561 crore to establish four biogas plants. This initiative aligns with the Union Cabinet's GOBARdhan scheme, which aims to promote compressed biogas (CBG) production and distribution.
Bhargava highlighted that these biogas plants would produce zero-emission fuel, easing pressure on conventional fuels like CNG and reducing the need for coal-fired electricity generation. The GOBARdhan scheme provides a dedicated CBG Offtake Assurance framework, targeting a 5% CBG obligation in CNG (Transport) and PNG (Domestic) segments by FY 2028-29, ensuring a reliable market for producers.