New Delhi : On Tuesday, Suzuki Motor Corporation (SMC) of Japan reaffirmed its ambitious goal to sell 3 million passenger vehicles in India by 2030, emphasizing its commitment to doubling manufacturing capacity in the country to 4 million units within the next decade. India stands as its single-largest market, reported a business daily.Anticipating a robust growth in India’s passenger vehicle market, with projections to surge from slightly over 4 million units in 2023-24 to 6 million units by the set target year, Suzuki Motor Corporation (SMC) envisions substantial expansion. Maruti Suzuki India Ltd, the country’s largest car manufacturer and SMC’s local subsidiary, is striving for an increased market share of 50% by 2030, up from its current 42%. In this endeavor, a notable 15% of its sales will be driven by battery electric vehicles (BEVs).
While many domestic original equipment manufacturers (OEMs) are setting more ambitious targets for electric vehicle adoption by 2030, ranging from 25% to 30% of total passenger vehicle sales, Maruti’s strategy focuses on hybrid vehicles. It envisions hybrids accounting for a quarter of its sales by the decade’s end. Maruti Suzuki holds a pivotal role in Suzuki Motor Japan’s global operations. In the fiscal year 2021-22, India contributed 39% of SMC’s total global revenue at 1,788 billion yen, surpassing Japan’s 1,212 billion yen. Additionally, other global markets in Asia, Europe, and America contributed 1,641 billion yen.
Maruti Suzuki further solidifies its position as the dominant CNG-fitted vehicle manufacturer in India, commanding 74% of the total market for CNG passenger vehicles.
During the quarter ending in June 2023, the introduction of new sports utility vehicles (SUVs) by Maruti Suzuki in India significantly contributed to sales and India’s role in SMC’s overall performance. According to Suzuki’s financial presentation, the increase in net sales was attributed to price adjustments in response to inflation, enhanced product mix driven by the introduction of new SUVs in the Indian market, an increase in sales volume mitigating the impact of semiconductor-related production cuts, and the influence of foreign exchange rates.
The carmaker unveiled the eVX, Suzuki’s inaugural global electric vehicle, scheduled for a 2023-24 launch in India, at the Japan Mobility Show. Maruti Suzuki had launched the global concept in India first, during the Auto Expo 2023.
In another development, operations at Maruti Suzuki’s upcoming manufacturing facility in Kharkhoda, Haryana, are set to commence in 2023-24, providing a substantial capacity boost of 1 million units. Simultaneously, the automaker has announced its plans to identify a new production site, with the goal of adding another 1 million units in capacity by 2030, anticipating a surge in both domestic and export demand.
In July, Maruti Suzuki made an announcement regarding its India manufacturing operations. The company disclosed its plans to restructure these operations by acquiring full ownership of its contract manufacturing partner, Suzuki Motor Gujarat (SMG), from its parent company, Suzuki Motor Corp.
Source: Livemint
