Maruti Suzuki to introduce 10 new models by FY31: Chairman Bhargava

Maruti Suzuki India Limited, the country’s largest automobile manufacturer, is planning to introduce 10 new models in its portfolio through FY31, the company's chairman RC Bhargava said in the shareholders meeting. With this, the company will have 28 models in its portfolio.

"By FY 2030-31, your Company could have about 28 different models. Clearly, the organisation and systems for selling such a large variety of cars will require changes from what exists at present," said Bhargava. The company unveiled Maruti Suzuki 3.0 strategy with an aim to expand the company’s production capacity to two million cars a year by FY31. According to the company, the required investments for this will come from internal resources. As part of its Maruti Suzuki 3.0 strategy, the company will be increasing its workforce and enhancing its engineering capabilities.

The company also plans to add six electric vehicles to its portfolio by FY31. The sale of its model will begin in FY25. According to Bhargava, the EV models will comprise 15-20% of the company’s total sales by FY31. "The conditions in India require that the attainment of carbon neutrality in the transportation sector should be achieved by a mix of technologies that are appropriate to our resource endowment and economic conditions. We must use the enormous amount of animal waste that is generated in the country. Equally large is the opportunity created by our agricultural and other waste as well as the potential to increase the output from our land resources. The use of hybrid technology, ethanol, Compressed Bio-gas and CNG in cars will all lead us faster to our goal of reducing the carbon footprint than relying only on any one technology," said Bhargava.

The company projects the export volumes to reach at 7,50,000-8,00,000 cars by FY31. "The domestic plus export requirements have made it necessary for your company to add another 2 million manufacturing capacity. Work is progressing at the first site in Kharkhoda, Haryana, and it is expected that the first plant of 250,000 capacity will start production in the first half of 2025. Thereafter, one similar plant will be added each year to reach a capacity of one million. At the same time, we are in the process of selecting a second site for adding another one million capacity by FY 2030-31," said Bhargava.

Bhargava, however, does not expect the domestic automobile industry to register a double-digit growth till FY31. "While we do not expect the car industry to grow in double digits, like what happened in China in the past, we do expect that a 6% growth rate will be maintained till FY 2030-31. In FY 2023-24, your Company expects to grow at a slightly higher rate," said Bhargava.

Last week, the company’s board of directors approved the acquisition of Suzuki Motor Gujarat Pvt Ltd (SMG) from Suzuki Motor Corporation. The company reported a 145% year-on-year (YoY) jump to ₹2,485 crore in the April to June quarter this year. The company's revenue from operations surged 22% YoY to ₹32,327 crore in the June quarter.