In a recent interview, RC Bhargava, Chairman of Maruti Suzuki India (MSIL), predicted that India could outpace the US and China to become the leading automobile manufacturer by 2028. This bold prediction is fueled by a significant increase in investments in the country’s automobile sector and ambitious expansion plans by leading automobile manufacturers, including Maruti Suzuki.
Bhargava highlighted several strategic investments in the industry that are expected to boost production in the coming years. These include a ₹20,000 crore ($2.7 billion) investment from Hyundai Motor India, a ₹5,000 crore ($675 million) investment from MG India, and a ₹18,000 crore ($2.4 billion) investment from Maruti Suzuki itself, to be used to expand its upcoming plant in Kharkoda, Sonipat. In the auto components sector, Jai Bharat Maruti has announced an investment of ₹300-350 crore ($40-47 million) to meet MSIL’s demand.
India’s Transport Minister, Nitin Gadkari, has similarly expressed optimism about the country’s automotive future, stating that India could become the world’s largest automobile market within five years, thanks to a surge in electric vehicles and flex-fuel engines.
Bhargava acknowledged that, at present, overtaking China, which sold 26.86 million units of automobiles in 2022, would be a considerable challenge. However, he believes that India, which sold 20.75 million units the same year, has the potential to substantially increase manufacturing, particularly in the car segment.
Despite a global shortage of semiconductors that has hampered auto production worldwide, Maruti Suzuki exported around 260,000 vehicles in the 2022-23 fiscal year. The company aims to triple its exports by 2030, to approximately 700,000-800,000 cars, and Bhargava believes other Indian manufacturers could achieve similar growth.
This optimism is reflected in recent statistics from the Society of Indian Automobile Manufacturers (SIAM), which show a 14.71% increase in the country’s vehicle exports in FY23, compared to FY22. Although a drop in two-wheeler exports led to a 15.23% decline in overall exports last fiscal year, the continued growth in car exports suggests a bright future for India’s automobile industry.
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