Maruti Suzuki Targets Over 10% Growth in FY27 Amid Strong Demand
Maruti Suzuki sees double-digit growth in FY27 as demand holds firm despite West Asia tensions
The Economic TimesImage: The Economic Times
Maruti Suzuki, India's largest car manufacturer, aims for over 10% growth in FY27, driven by robust local demand despite geopolitical tensions in West Asia. The company reported record sales of 191,122 units in April and plans to ramp up production capacity significantly to meet the increasing demand.
- 01Maruti Suzuki reported all-time high sales of 191,122 units in April.
- 02The company aims for over 10% growth in FY27, exceeding the industry average of 5-7%.
- 03Pending customer orders stand at 165,000 vehicles.
- 04Maruti Suzuki plans to invest โน14,000 crore to expand production capacity.
- 05Exports grew by 43.5%, reaching 40,0054 units despite geopolitical challenges.
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Maruti Suzuki, headquartered in New Delhi, is poised for over 10% growth in the current financial year (FY27), significantly outpacing the projected industry growth of 5-7%. The company reported record monthly sales of 191,122 units in April, highlighting strong demand across various segments, including small cars and SUVs. Despite geopolitical tensions in West Asia, Maruti Suzuki's domestic demand remains robust, with 165,000 pending customer orders and dealer inventory at a low of 16-17 days. To enhance production, the company is investing โน14,000 crore in expanding capacity at its facilities in Kharkhoda, Haryana, and Hansalpur, Gujarat, which will add 250,000 units of production capacity at each site. Additionally, the company is benefiting from favorable government policies, such as GST cuts and interest rate reductions, which have increased consumer purchasing power. Exports also performed well, growing by 43.5% to 40,0054 units as the company diversifies its markets to mitigate risks from international disruptions.
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Maruti Suzuki's growth plans and capacity expansion will likely lead to increased job opportunities and availability of vehicles for consumers in India.
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