Maruti Suzuki India’s chairman, R.C. Bhargava, forecasts accelerated growth in India’s small-car segment over the next five years, citing GST reforms, while the company ramps up SUV launches and green energy initiatives including biogas production.
Maruti Suzuki India’s chairman, R.C. Bhargava, said the company expects India’s small-car market to grow faster over the next five years, arguing that recent goods and services tax reforms have given the auto industry and parts of the wider economy a fresh lift. The outlook suggests a possible turnaround for a segment that has been losing momentum as buyers increasingly opted for sport utility vehicles and larger cars.
Bhargava said Maruti Suzuki is trying to build the most accurate forecast it can for passenger-vehicle demand through FY2030-31, with the broader market seen reaching 6.1 million to 6.3 million units. The company, meanwhile, is leaning harder into the SUV boom. Managing director and chief executive Hisashi Takeuchi said Maruti plans to launch seven new SUV nameplates over the next five to six years and has already accelerated capacity expansion by 500,000 units in FY2026-27.
The company’s confidence comes after another record year. Maruti Suzuki reported annual sales of 2.42 million vehicles and exports of 447,000 units in FY26, its third straight year above the 2 million mark. A report by Livemint said the automaker’s passenger-vehicle market share eased slightly in FY26 even as sales rose, reflecting the strain of operating at full capacity and a backlog of orders.
Maruti is also broadening its green-energy push. Bhargava said the board has approved four biogas plants in an initial phase at a cost of ₹561 crore, with the long-term aim of scaling up production and distribution of biogas. The move aligns with the government’s GOBARdhan scheme, which is meant to support compressed biogas supply. In June, Maruti said it also plans a 10-tonnes-a-day biogas plant at Kharkhoda and an expanded unit at Manesar, part of a wider investment programme in renewable energy.
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