Maruti Suzuki sees small cars, SUVs driving India’s auto market to 6.3 million
- IBEF
- August 11, 2026
India’s passenger vehicle market is expected to grow to 6.1-6.3 million units annually by FY31, driven by a revival in demand for small cars and continued strong traction for sport utility vehicles (SUVs), according to Maruti Suzuki India Chairman Mr. R.C. Bhargava. The company is reassessing its five-year growth targets as it expects the small-car segment to expand significantly faster than during the previous five years. Maruti Suzuki recorded 2.42 million vehicle sales in FY26, including an all-time high 447,000 exports, and expects to reach its next million-unit sales milestone earlier than previously projected. The company is also strengthening its production capabilities to meet anticipated market demand and plans to add 500,000 units of manufacturing capacity in FY27.
Maruti Suzuki plans to invest around Rs. 35,000 crore (US$ 3.67 billion) to increase annual production capacity to 3.65 million vehicles by FY31. The company also plans to launch seven new SUVs over the next five to six years to strengthen its presence in the growing segment. As part of its clean-energy strategy, Maruti Suzuki’s board has approved an initial investment of Rs. 561 crore (US$ 58.84 million) to establish four biogas plants, aimed at reducing dependence on imported compressed natural gas and supporting India’s net-zero goals. The company is also prioritising localisation, alternative sourcing and supplier capability development to mitigate geopolitical and supply-chain risks. These initiatives are expected to support domestic manufacturing, strengthen India’s automotive ecosystem and position Maruti Suzuki to benefit from the projected expansion of the passenger vehicle market.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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