Suzuki sees India’s automobile market growing fivefold by 2047

Suzuki aims to acquire 50% of the share in the Indian automobile market by 2030 compared to the 40% market share the company had at the end of FY24. Ayukawa further added that he is confident that the Indian market will see more growth in the medium to long term.

The Japanese carmaker has been a leading participant in the Indian market for several decades. With top-selling models like Swift and Brezza, the company is now planning to foray into the electric vehicle (EV) market in India by introducing its first EV model next year. Although the planned EV model falls in the premium range, Suzuki will also introduce smaller and more affordable models. Ayukawa stated that despite people paying more for cars than they used to, India remains a price-conscious market.

Suzuki may also venture into domestic production of cells in the next 5-10 years to meet the requirements of more modern EVs.

On a strategic level, the company entered into a partnership with Toyota in 2019 after a 5% stake sale. The partnership will allow Toyota to focus on larger models while Suzuki focuses on more compact models. Moreover, the partnership will support Suzuki in tackling competition from Indian automobile manufacturers like Tata Motors and Mahindra.

Additionally, Suzuki also sees a growth in the market for cars powered by compressed natural gas (CNG). Maruti Suzuki sold 4.83 lakh units of CNG cars in FY24. In the previous fiscal, India saw a total sale of 4.2 passenger vehicles and Suzuki expects this number to grow to 20 million units by 2047.

Shares of Maruti Suzuki have risen by nearly 23% since the beginning of the year. The stock has gained over 29% in the past year.