Maruti Suzuki Sees Small Cars, SUVs Driving Auto Market to 6.3 Million
India’s passenger vehicle market could expand significantly over the next five years, with Maruti Suzuki expecting annual sales to reach around 6.1-6.3 million units by FY31. The automaker believes renewed demand for small cars, along with continued growth in SUVs, will be among the key drivers of this expansion.
Maruti Suzuki Chairman R C Bhargava said passenger vehicle sales in India could rise by nearly one-third from the 4.64 million units recorded in FY26. The projection reflects expectations of a broader recovery in the entry-level car segment alongside sustained consumer preference for SUVs.
Small Cars Expected to Make a Comeback
After facing several years of subdued demand, small cars could regain momentum as affordability improves and buyers return to the entry-level passenger vehicle market. Maruti Suzuki expects this segment to play an important role in driving overall industry growth.
The company continues to maintain a strong presence in the small-car segment, which remains important for first-time buyers and consumers seeking lower acquisition and running costs.
SUVs Continue to Gain Popularity
SUVs are expected to remain another major growth engine for India's passenger vehicle market. Consumer preference has increasingly shifted towards SUVs and utility vehicles, encouraging manufacturers to expand their offerings in this segment.
Maruti Suzuki is also preparing to strengthen its SUV portfolio, with five new SUV models planned as part of its future product strategy. The company expects a combination of new products and rising demand to support its growth ambitions.
Maruti Suzuki Expands Manufacturing Capacity
To prepare for higher vehicle demand, Maruti Suzuki is accelerating investments across its manufacturing facilities. The company plans to add new production lines and substantially increase its overall installed capacity by FY31.
The expansion is aimed at ensuring that production can keep pace with expected growth in domestic passenger vehicle demand while giving the automaker greater flexibility across different vehicle segments.
Focus on Alternative Energy and Biogas
Alongside its vehicle and capacity expansion plans, Maruti Suzuki is also exploring alternative energy solutions. The company plans to invest in biogas plants, supporting its broader efforts towards cleaner energy and more sustainable manufacturing.
The move comes as automakers increasingly look beyond conventional petrol and diesel technologies and explore multiple pathways for reducing emissions and improving energy efficiency.
Outlook for India's Passenger Vehicle Market
Maruti Suzuki's forecast points to a potentially stronger growth phase for India's passenger vehicle industry through FY31. A recovery in small-car demand, continued SUV popularity and expanding manufacturing capacity could collectively support higher volumes.
If the market reaches 6.1-6.3 million passenger vehicles annually, it would represent a substantial increase from FY26 levels. For Maruti Suzuki, strengthening its small-car portfolio while adding new SUVs and expanding production capacity will be central to capturing this expected growth.
