Maruti’s ramp-up
Maruti Suzuki India plans to double its production capacity to 4 million units annually by 2030-31, its chairman R.C. Bhargava said on Tuesday. To put it in perspective, it took the company 40 years to reach its current 2 million capacity, but it expects to add the next 2 million in just eight years.
It clearly expects rapid growth on a large base, although its decline in market share to under 42% in 2022-23 suggests that hitting its target may not be simply about accelerated production. It lags rivals in the sunrise segment of electric vehicles (EVs), where Tata Motors and Mahindra and Mahindra have zipped ahead. Maruti’s first EV is expected to hit Indian streets only in 2024-25.
Also, sales of Maruti’s small cars, its mainstay, have been slowing while bigger vehicles sell in increasing numbers. The company has been playing catch-up here. Its Grand Vitara and recently launched Jimny have helped whet demand for its vehicles in the high-growth sport utility vehicle segment, even as its Invicto woos buyers of premium multi-purpose vehicles.
Read more on livemint.com
