New Delhi (India), 06/08/23: Maruti Suzuki India (MSIL) might have 28 different models in its range by 2030-31 (FY31), including six electric vehicles (EVs), according to Chairman R C Bhargava in the company’s annual report.
Currently, India’s largest automobile manufacturer sells 18 different models. He predicted that the Indian automobile sector would develop at a 6% annual rate through FY31.
Bhargava stated that the company is entering its third stage of development, dubbed Maruti 3.0.
In their annual report Bhargava stated, “The challenges before the company are unprecedented. It took us 40 years to create a capacity of 2 million units and SMC (Suzuki Motor Corporation) helped in this process by establishing the Gujarat facility. Your company now has to add the next 2 million in a period of 9 years.”
He highlighted that managing all challenges related to the manufacturing of 4 million units per year necessitates considerable consideration and probable reform of the firm’s structure while keeping in mind the best interests of all shareholders as well as other stakeholders of the company. “We will announce what we are proposing as soon as possible,” he continued.
MSIL said earlier this week that it will acquire the Gujarat factory from SMC in order to increase production efficiency. Maruti anticipates the acquisition to be completed by March 31, 2024.
Suzuki Motor Gujarat Private Limited (SMG), a subsidiary of SMC, ran the plant in Hansalpur, Gujarat. Under a contract manufacturing arrangement inked in 2015, SMG has been producing automobiles for Maruti such as the Baleno, Swift, Dzire, and Fronx. SMC holds approximately 57% of MSIL.
While MSIL does not expect the Indian auto industry to rise in double digits, as has happened in China in the past, he does predict a 6% growth rate to be maintained till FY31. MSIL’s growth rate in FY24 is predicted to be slightly higher than 6%.
He said, “Along with the rising domestic demand, the prospects for exports are also expected to continue to improve. Our exports rose to 259,000 units last year. We expect the demand for exports to continue to grow and export volumes are projected at 750,000-800,000 cars by FY31.”
Commenting on the electric vehicle manufacturing he said, “The development of EVs is proceeding well at the Gujarat facility. Your company expects to start the sale of the first model in 2024-25. By 2030-31 we expect to have six EV models. These models are expected to comprise 15-20 per cent of our total sales by that time.”
SMC previously said that MSIL will deploy six EVs by FY31.