Soft domestic PV demand in the next few years is the focus of India’s Maruti Suzuki: Report
Mumbai (Maharashtra) [India]April 28 (ANI): Despite recording its record of its 25-quarter sales in the 4th quarter and maintaining strong momentum in rural and export markets, Maruti Suzuki India (MSIL) is concerned about concerns about domestic passenger car demand in the coming years.
A research report from LKP said the company faces an increasingly challenging landscape as weak domestic demand could cast its products and export plans.
MSIL has maintained its position as India’s top passenger car exporter for the fourth consecutive year, with exports set to grow further after the upcoming H1FY26 E-Vitara and strong demand for Jimny.
The launch of new models such as the E-Vitara and the upcoming SUV, as well as earnings in the CNG and export segments, is expected to provide some cushioning. However, these efforts may only partially offset domestic headwinds.
The company aims to sell 700,000 CNG units in FY26 and expects export volume to grow by 20%. However, the overall outlook remains cautious due to external demand and challenges in new export markets such as Japan.
With the launch of the E-Vitara and another SUV lined up for fiscal 26, MSIL is relying on product innovation and export momentum to drive growth. However, soft domestic demand, especially in entry-level areas, uncertainty in external markets poses a significant obstacle.
MSIL said in a call from investors that the company is developing a small hybrid car in light of the demand for hybrid cars.
It also said that for fiscal 2026, the company planned capital budget ₹Rs 8,000-90 crore, but the company is not in a hurry in Gujarat because of insufficient demand.
Regarding the issue of increasing sales of small car cars due to the increasing number of income tax tablets, the company suspects it will have a significant impact on sales of small cars.
MSIL also said the company is focusing on safety issues and said all cars have six airbags starting early this year
Regarding the impact of U.S. tariffs on MSIL, it said: “We will not export to the United States and will not be hit by global uncertainty.”
Maruti Suzuki currently has a retail market share of about 41%, aiming to gradually increase. (ANI)
