Maruti Suzuki 3.0 to make 40 lakh cars a year by 2031, double the sales from now

Maruti Suzuki 3.0 – as the company is calling its third phase of growth – focuses on increasing production capacity.

India's largest carmaker Maruti Suzuki in its third phase of growth aims to sell 40 lakh cars in a year by 2031, almost doubling from current levels, said chief investor relations officer Rahul Bharti at the Q4 earnings conference call on April 26.

Maruti Suzuki 3.0 – as the company is calling its third phase of growth – focuses on increasing production capacity. In the first phase, the focus was on building a local component manufacturing ecosystem and spreading the network across the country. In the second phase, the focus was on consolidating the company’s lead position.

Also Read: Maruti Suzuki Q4 net profit rises 48% to Rs 3,878 cr, firm declares Rs 125 dividend

In March 2024, the total production volume including both passengers and light commercial vehicles stood at 1.66 lakh units compared to 1.54 lakh in the year-ago period. That annualises to about 20 lakh vehicles in a year.

To achieve the goal of 40 lakh vehicle production per year, the company has already commenced the construction of a Greenfield project in Karkoda, Haryana. “The first plant with an annual production capacity of 2.5 lakh units is on course to be operational in 2025,” Bharti said.

Recently, at the Vibrant Gujarat Summit 2024, Maruti Suzuki signed an MOU with the government of Gujarat to set up a new automobile manufacturing facility, a greenfield facility. “This is subject to the availability of suitable land and other parameters. The annual production capacity is expected to become 1 million units with a total investment amount of about Rs 35,000 crores,” Bharti said.

As for the preferred technology going ahead, Bharti said that several power platforms such as EVs (electric vehicles), hybrids, CNG, and others will coexist for a reasonably long period of time due to the carbon neutrality requirements. “Managing this scale and complexity of production with multiple path trains under different managements would pose several challenges,” he added.

Earlier today, Maruti Suzuki reported a 48 percent year-on-year rise in its net profit to Rs 3,878 crore for the fourth quarter ended March 31, 2024, on account of higher sales volume and favourable commodity prices. Further, it registered a revenue of Rs 38,235 crore in the three months ended March 31. Additionally, the company declared its highest-ever dividend of Rs 125 per share.

Ahead of the results announcement, MSIL shares settled 1.26 percent lower at Rs 12,760.