Menu

EV Sales Growth

  • Home>
  • EV Sales Growth
Maruti Suzuki sets the target of regaining 50 percent auto market share in India
Automobile News, Autos, Business, Equities, Markets - February 21, 2025

Maruti Suzuki sets the target of regaining 50 percent auto market share in India

Maruti Suzuki sets the target of regaining 50 percent auto market share in India

 

Maruti Suzuki is considered as the largest automaker in India. It aims to regain 50 percent of its market share in the Indian passenger vehicle segment by the year 2030. 

 

Market share of the company

In the financial year 2019, the company had a market share of 50 percent in the Indian auto market. In the last few years, it faced strong competition from its peers like Kia, Tata, and Hyundai. In recent times, the company recorded a market share of about 41.6 percent in India.

 

Performance of the company in 3QFY25

The company was successful in achieving its revenue and profit targets due to better sales portfolio, quality, and better condition of exchange rates. However, the company recorded a contraction in achieving its volume sales growth. It was driven by contraction in its market share in the Indian auto market and also strong competition in the EV sector. 

 

Roadmap of Maruti Suzuki

The company’s mid-term management plan is to accelerate the production capacity to around 4 million units per annum which will be twice its current production capacity.  It targets to become the top auto manufacturer in the domestic market, export segment, and also in the Electric Vehicle (EV) segment in the upcoming five years. To put this plan in implementation, the company is developing two production facilities in Gujarat and Kharkhoda. 

Maruti Suzuki highlights that India is a crucial market for automakers. It will continue to progress in the future as well. It will act as an engine for the progress of Suzuki in the future. In recent times, the auto industry is recording a highly competitive environment and also rising demand of consumers for high quality of equipment, services, and product functions in their vehicles. 

SMC, a parent company of Maruti Suzuki main focus is to expand product portfolio and develop its capabilities in order to meet the preference of the Indian auto market. The company plans to expand and improve its product portfolio in terms of medium and large Sport utility vehicles (SUVs) and Multi-purpose vehicles (MPVs). It also focuses on quick development and launching of affordable vehicle segments in the market which will satisfy the consumer preferences.

The company plans to launch vehicles in various segments like battery electric vehicles, hybrid electric vehicles, CNG vehicles, and fossil fuel vehicles. It will be designed and manufactured as per the geographic conditions and consumer preference in various regions of India.

 

Launch of e Vitara

In the month of January 2025, the company launched its first BEV e Vitara at the Bharat Mobility Global Expo 2025. It is set to be sold in both domestic and international markets.  Further, the company plans to launch about 4 BEV auto models by the financial year 2030. Its peer companies like Tata Motors already have a strong market and portfolio in terms of EV models. This entry of Suzuki in EV is considered to be a late entry. Despite this, it is important to understand that India’s EV market is still in the growing phase compared to other nations in the world. The company aspires to achieve a strong position in the EV market with the advantage of a large consumer base and extensive network of touchpoints.

 

The company will join hands with FinDreams, which is a subsidiary company of China’s BYD for the purpose of purchasing batteries for its EV model vehicles. In the upcoming years, it plans to localize the production which will align with the progress in the EV market. 

 

It also has plans to upscale the Nexa into a premium brand and Arena addressing a broader customer base. This will help in achieving the company’s goal to adhere to better customer experience. 

 

Collaboration with Toyota

Maruti Suzuki’s strategic collaboration with Toyota continues to remain strong by working as equal partners and competitors. Both the companies plan to create a carbon-neutral space with cooperation and aims to progress in the future. The company has the goal of achieving carbon emission reduction of around 42 percent by the financial year 2030.

 

Future Outlook

The company aims to achieve market share of 50 percent in the Indian market by the year 2030. Additionally, it targets operating profit margin of higher than or equal to 10 percent and return on equity of higher than or equal to 15 percent in the initial half period of the 2030s.

 

The image added is for representation purposes only

Larsen & Toubro recorded strong revenue and PAT growth with highest quarterly orderbook in 3QFY25

 

 

 

 

, , 0 Comment
Read More
India Targets 50% EV Sales by 2030 for Net Zero Emission by 2070
Autos, Business, Equities, Markets - January 21, 2025

India Targets 50% EV Sales by 2030 for Net Zero Emission by 2070

India Targets 50% EV Sales by 2030 for Net Zero Emission by 2070

India has a set goal of achieving a net zero emission target for the year 2070. In order to achieve this goal, India has to complete Electric vehicles sales growth of 50 percent by the year 2030. On 20th January, 2024, Environment Minister of India, Bhupender Yadav made this announcement in the third International Conference on Sustainable Circularity held by Society of Indian Automobile Manufacturers (SIAM). He further stated that India has achieved a capacity to sell cars per annum more compared to the size of population of few countries. Along with this milestone, great responsibility of conserving the environment comes.

Need to hike EV sales
The Environment Minister of India states that India is recording a hike in sales of vehicles which is a good sign. The auto industry and government must work together to make sure that this hike will not harm the environment.

Electric vehicles sales are anticipated to hit the record of close to 35 percent in the year 2030. However, to make sure the automobile industry achieves the target of net zero emission by the year 2070, the sales needs to increase by 50 percent.

The hike in EV sales will not only help climate conservation but will also promote job creation. The number of sales in the Electric vehicles segment is expected to record around 10 million units by the completion of the year 2030. It will help to create employment of about 5 million.

Electric Vehicles also play a major role in reduction of CO2 emissions. These vehicles are quite sustainable for the earth. It does not release pollution in the environment. It requires batteries to work and these batteries are charged using electricity.

By the end of the year 2030, electric vehicles in India are expected to reduce CO2 emission to about 5 metric tonnes. This cutting of CO2 emissions can reach a range of 110 to 380 metric tonnes by the end of the year 2050.

Participation in GCP
Minister encouraged companies in the automobile industry to voluntarily contribute towards the environment by engaging in the Green Credit Programme (GCP) of India. By becoming part of GCP, it will give automakers rewards for their steps taken towards environment conservation.

Promote Circularity Practice
The circularity practice refers to reuse of components as well as depletion of waste formed while producing a commodity. The environment minister states that India could raise about 624 billion US dollars every year by the end of the year 2050, in case of implementation of circular practices in the manufacturing activity of the country.

The Society of Indian Automobile Manufacturers (SIAM) must encourage the practice of circularity in the manufacturing of vehicles in India. It should also make consumers aware of the significance of such practices.

The image added is for representation purposes only

Solid reason for GST reduction on two-wheelers

, , 0 Comment
Read More