Signifying a robust vision for growth and adaptation to an ever-evolving auto landscape, Maruti Suzuki India shared plans to escalate its production capacity to a staggering 40 lakh units annually within the next eight years. This ambitious leap necessitates an investment approaching Rs 45,000 crore.
Company Chairman RC Bhargava unveiled these intentions at Maruti Suzuki’s annual general meeting, emphasizing the company’s remarkable trajectory. “Two million production and sales in 40 years and is now preparing to add two million in the next eight years,” articulated Bhargava.
Bhargava’s foresight resonates with the transformative pulse of the global auto sector. With environmental considerations taking center stage, Maruti Suzuki’s strategic framework encompasses a wide array of technologies. This list spans electric vehicles (EVs), hybrids, CNG, ethanol-blended fuels, and compressed biogas, a testimony to the dynamic technological shifts anticipated in the coming decade.
Bhargava observed the forthcoming era as promising complexities and novelties. He stressed the considerable capital mobilization for this expansive production ambition. Tagged ‘Maruti 3.0’, this next chapter projects an increment of 20 lakh units in production, accompanied by a rollout of around 28 diverse models by fiscal year 2030-31.
Narrating the company’s journey, Bhargava drew attention to its three pivotal phases. “Our first phase was when we were a public enterprise. The second phase ended with the Covid pandemic, and the Indian car market became the third largest in the world.”
At the AGM, Bhargava also touched upon the imperative for Maruti Suzuki’s structural metamorphosis, ensuring it remains agile and ready to tap into prospective growth vistas.
A shareholder query about a potential stock split was also fielded, with Bhargava acknowledging the possibility. While a split could enhance trading abilities due to the stock’s substantial price, Bhargava clarified that it wouldn’t significantly affect the company’s performance or returns to shareholders. Presently, Maruti Suzuki India’s shares exhibit a modest ascension, priced at Rs 9,626.55 on BSE.
Addressing the murmurs about the company’s gradual entry into the EV arena, Bhargava conceded to a measured beginning but voiced no reservations about its prospective market standing.”Yes, we are behind some companies in launching EV but that does not mean that we are late in the market or that when we are coming in 2024-25, we will have in any way damaged our ability to get an adequate market share.” he conveyed.
Bhargava wrapped up by highlighting Maruti Suzuki’s future direction, with a keen eye on augmenting its footprint in the growing SUV domain. With the smaller car appetite receding, a strategic pivot appears imminent.
“We are adjusting to that and I can assure you that in the coming years, we will make every effort to regain our market share,” Bhargava declared with conviction.
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