India’s largest carmaker Maruti Suzuki India Ltd (MSIL), expects the small-car market to grow significantly faster over the next five years than it did during the previous five-year period, as the overall passenger vehicle market expands.
The company is currently working on a detailed assessment of the likely growth trajectory of the Indian car market over the next five years.
“Presently, we are estimating that the car industry would grow to 6.1 to 6.3 million units by FY 2030-31 and that the share of the small car market would grow significantly faster than its pace of growth in the last five years,” Maruti Suzuki India Chairman R C Bhargava said.
Record sales and exports
Maruti Suzuki registered its highest-ever annual sales of 24.22 lakh vehicles and record exports of 4.47 lakh vehicles in FY2025-26.
Having crossed the 2 million-vehicle annual sales mark for the third consecutive year, the company said it is optimistic about reaching its next million-vehicle milestone earlier than anticipated, supported by key growth drivers across its business.
In a note accompanying its Annual Report 2026, MSIL said the revival of the small-car segment, strengthening of its SUV portfolio, multi-powertrain strategy, capacity expansion and robust export performance have created fresh momentum for growth.
Betting on biogas for cleaner mobility
Maruti Suzuki is also stepping up its efforts to support India’s transition towards cleaner energy, with biogas emerging as an important part of its strategy.
Bhargava said India would need to deploy multiple technologies to achieve its net-zero ambitions and highlighted the potential of producing biogas from locally available resources.
“In India we need to use multiple technologies to achieve our goal of moving to net zero. We strongly believe that biogas can be generated in large quantities from locally available resources,” he said.
According to Bhargava, biogas could substitute imported CNG while providing a cleaner and renewable source of energy with zero import content. The process could also generate valuable by-products.
The Maruti Suzuki board has approved the setting up of four biogas plants in the first phase at an investment of ₹561 crore.
“Once we have learnt more about the process and technology, we hope to invest substantial amounts of money in the production and distribution of biogas,” Bhargava said.
He added that biogas could provide zero-emission fuel while reducing pressure on CNG and coal-based electricity generation.
Capacity expansion and SUV push
Maruti Suzuki Managing Director and CEO Hisashi Takeuchi said the company has accelerated its capacity expansion plans, reflecting its confidence in the medium-term outlook.
“During FY 2026-27, we added 500,000 units of manufacturing capacity. Customer expectations continue to evolve rapidly. The Company has plans to introduce 7 SUVs in the next 5 to 6 years to further strengthen SUV portfolio,” Takeuchi said.
The planned SUV launches are expected to strengthen Maruti Suzuki’s presence in one of the fastest-growing segments of the Indian passenger vehicle market, while its multi-powertrain approach will allow it to cater to changing customer preferences and evolving emission norms.
Supporting India’s 2047 ambition
Takeuchi said the automobile industry has both a responsibility and an opportunity to contribute to India’s journey towards becoming a developed nation by 2047.
“Through manufacturing, exports, technology development, employment generation, skill creation and sustainable mobility, Maruti Suzuki remains committed to supporting India’s aspirations,” he said.
He added that the company’s next million-vehicle sales milestone would represent more than a volume achievement.
“They represent greater access to mobility, stronger manufacturing capabilities, wider adoption of cleaner technologies, deeper localization and broader value creation for society,” Takeuchi said.