Maruti Suzuki India plans to sell 2 million vehicles this fiscal year
The company exported 283,000 vehicles in FY24 and aims to increase this figure to 300,000 vehicles in FY25
According to a report in The Economic Times (ET), the target was shared with the automaker’s suppliers during a two-day vendor meet in Turkey, which began on Monday.
The ET report further stated that the company’s projected growth exceeds the auto industry body’s sales guidance for FY25 by 350-500 basis points.
Anticipating a slowdown in sales compared to the performance of FY24, where the industry surged by 8.45 per cent to reach a record 3.9 million vehicles, the Society of Indian Automobile Manufacturers (SIAM) has predicted a three to five per cent growth in passenger vehicle sales in India for the current financial year. The company, which is launching the new generation Swift and Dzire models later this year, is hoping to boost overall sales volume.
The ET reported that compact car sales faced challenges due to a change in consumer preference from hatchbacks and sedans to sport-utility vehicles (SUVs). The domestic sales of compact cars declined by approximately four per cent to 828,000 units in FY24.
The automaker urged its part vendors to prepare for supplying a combined total of 2.4 million units this financial year, encompassing domestic sales, exports, light commercial vehicles, and sales to Toyota Kirloskar Motor. This represents a ten per cent increase from FY24.
The ET quoted Rahul Bharti, head of corporate affairs at Maruti Suzuki, as saying, “The total production of components is the sum of domestic passenger vehicle sales, exports, original equipment manufacturers’ sales, light commercial vehicle sales, and parts made for Grand Vitara. Considering fluctuations and the need for margins, etc., a request for preparedness for components for 2.4 million volumes has been conveyed to vendor partners.”
Additionally, in order to achieve its goal of doubling output by 2030, the company intends to increase exports and invest Rs 1.25 trillion to sustain its swift capacity expansion strategy. The company exported 283,000 vehicles in FY24 and aims to increase this figure to 300,000 vehicles in FY25, the ET report stated.
Maruti’s plans to surpass industry growth indicate the company’s aggressive stance in reclaiming market share. Over the last three years, the company has regained some of the ground lost to competitors. In FY24, Maruti increased its market share by 100 basis points to 42 per cent, attributed to increased sales of SUVs.
First Published: May 01 2024 | 9:33 AM IST