Suzuki Motor Corp. envisions a significant transformation in India’s automobile market, predicting it will grow fivefold by 2047. This ambitious outlook, shared by Executive Vice President Kenichi Ayukawa, is driven by the country’s burgeoning battery electric vehicle (BEV) sector and the expanding middle class.
Ambitious Targets for Maruti Suzuki
Suzuki’s subsidiary, Maruti Suzuki India Ltd., aims to capture a 50% market share by 2030, up from around 40% in the fiscal year ending in March. “We’re confident that the Indian market will expand in the mid to long term,” Ayukawa stated in a recent interview.
Suzuki, the top-selling automaker in India since 1983 with popular models like the Swift and Brezza, plans to introduce its first-ever electric vehicle (EV) in India and Europe next year. This follows the showcasing of its mass production model at the upcoming auto expo in January. “We’ll develop products, invest, and expand our network,” Ayukawa emphasized.
Market Context and Comparisons
The Society of Indian Automobile Manufacturers reported 4.2 million passenger vehicles sold in India in the last fiscal year. For comparison, the U.S. saw 3.1 million passenger car sales last year, Europe had 15 million, and China led the global market with 26 million sales, according to the International Organization of Motor Vehicle Manufacturers.
Suzuki’s planned eVX, a premium electric vehicle, is part of a broader strategy to also introduce more affordable and compact models with lighter batteries. Suzuki aims for EVs to comprise 15% of its sales in India by 2030. “India faces environmental issues, so I think EVs will grow to an extent,” Ayukawa said, noting that despite increasing car prices, “India remains a price-conscious market.”
Shifting Consumer Preferences and Competitive Landscape
Indian consumers are showing increased interest in crossovers and sport-utility vehicles (SUVs). However, Ayukawa acknowledges the stiff competition in this segment from local players Tata Motors Ltd. and Mahindra & Mahindra Ltd. Tata, India’s third-largest carmaker, leads the EV market with models like the Tiago and Nexon and anticipates its EV business to turn profitable by early 2026.
Innovation and Future Plans
Suzuki is committed to innovation, focusing on models for everyday needs, which includes developing new battery types. Ayukawa hinted at the potential for domestic battery cell production within the next 5 to 10 years.
Collaboration with Toyota Motor Corp., which holds a 5% stake in Suzuki, will play a crucial role. “We will learn basic know-how from Toyota and gradually make it our own,” Ayukawa said, highlighting Toyota’s EV technology as a key asset for Suzuki’s development.
Embracing Alternative Fuels
Besides electric vehicles, Suzuki sees promise in compressed natural gas (CNG) vehicles. Maruti Suzuki sold 483,000 CNG cars in the latest fiscal period, a 47% increase from the previous year. Suzuki plans to operationalize four plants converting methane from cow manure into fuel for CNG cars. However, challenges remain, such as scaling up the production and monetization of the residual organic fertilizer.
