Maruti Suzuki Bets On Exports To Drive Growth In Fy26 Amidst Pv Slowdown

Maruti Suzuki, nan country’s largest rider conveyance shaper is betting connected exports to thrust maturation successful FY26, arsenic nan manufacture anticipates a slowdown. The institution will attraction connected expanding exports by 20% successful FY26, R. C. Bhargava, Chairman, MSIL, told reporters successful a post-earnings telephone connected Friday. 

Maruti Suzuki reported a 4% diminution successful its nett profit to Rs 3,911.1 crore successful nan March 4th of FY25, arsenic against Rs 3,952.3 crore successful nan aforesaid play past year. The company’s exports grew by 17.5%. 

“We are doing bully not because of home sales; we are doing amended because exports person been buoyant. Export maturation successful FY25 was arsenic precocious arsenic 25%...We are now astir 43% of nan home exports. In nan coming year, nan business is going to beryllium very similar. Exports are expected to summation by 20%. And that is going to beryllium nan main driver for our full accumulation and sales,” says Bhargava. 

Notably, Bhargava reiterated that revival of mini car conception is important for nan maturation of rider conveyance industry. Maruti Suzuki witnessed a 9% diminution successful its mini car conception successful Q4.

“If 9% is nan diminution successful cars which are bought by 88% of nan group successful this country, past wherever will you get growth? It’s a truth that group person to look astatine and recognise. It’s not arsenic immoderate group look to deliberation that India has go able and everybody wants to bargain costly cars. That would hap if nan number of group having an income supra ₹12 lakh increases from 12% to 50%. But that’s not existent today,” Bhargava observed.

According to Bhargava, it's a fallacy to judge that nan diminution successful nan mini car conception and nan emergence of nan SUV conception are owed to changing user aspirations. “Only astir 12% of households successful India gain complete Rs 12 lakh annually and tin see buying a car priced astatine Rs 10 lakh aliases more,” Bhargava pointed out.

“Car buying successful India is mostly restricted to this 12%. How tin you expect maturation erstwhile 88% of nan state is astatine a level wherever they cannot spend these cars?” he added.

Notably, Bhargava doubts that nan Rs 12-lakh taxation alleviation successful nan national fund will reprieve nan mini car segment. “The costs of nan car has gone up by ₹90,000 this year. People are not going to put each their income taxation savings speech to bargain a car. These are mini households. They person galore requirements. A caller car will not beryllium nan apical request of these people,” Bhargava notes. 

Meanwhile, Maruti Suzuki will commencement income of e-Vitara, its first electrical vehicle, successful nan 2nd half of this year. According to Bhargava, nan institution will initially attraction connected export of its EV. The institution plans to nutrient 70,000 units this year. 

Published on: Apr 25, 2025 6:46 PM IST