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Key Points

Maruti Suzuki reported record quarterly sales but remains cautious about domestic passenger vehicle demand. The company is banking on exports and new models like the E-Vitara to sustain growth. It plans significant capital expenditure but sees no immediate need for a new plant due to weak demand. Despite challenges, Maruti aims to expand its 41% market share gradually.

Key Points: Maruti Suzuki Warns of Subdued Domestic PV Demand Despite Record Exports

  • Domestic demand concerns overshadow record Q4FY25 sales
  • Exports rise with E-Vitara and Jimny demand
  • Targets 700K CNG units in FY26
  • Plans Rs 8,000-9,000 crore capex
2 min read

Subdued domestic PV demand in coming years is a concern for Maruti Suzuki India: Report

Maruti Suzuki flags weak domestic passenger vehicle demand despite strong exports and new launches like the E-Vitara and upcoming SUV.

"We don’t export to the US, won’t be hit by global uncertainty – Maruti Suzuki"

Mumbai, April 28

Despite recording its highest-ever quarterly sales in Q4FY25 and maintaining strong momentum in rural and export markets, Maruti Suzuki India (MSIL) has flagged concerns about subdued domestic passenger vehicle demand in the coming years.

The company faces an increasingly challenging landscape as weakening domestic demand threatens to overshadow its product and export initiatives, says a research report by LKP.

MSIL maintained its position as India's top passenger vehicle exporter for the fourth consecutive year, with exports poised to grow further following the upcoming launch of the E-Vitara in H1FY26 and strong demand for the Jimny.

The launch of new models such as the E-Vitara and an upcoming SUV, along with gains in the CNG and export segments, are expected to provide some cushion; however, these efforts may only partially offset the domestic headwinds.

The company targets selling 700,000 CNG units in FY26 and projects a 20% rise in export volumes. However, with volatile external demand and challenges in sustaining growth in newer export markets, such as Japan, the overall outlook remains cautious.

With the launch of the E-Vitara and another SUV lined up for FY26, MSIL is banking on product innovation and export momentum to drive growth. Nevertheless, soft domestic demand, especially in the entry-level segment, and uncertainty in external markets pose significant hurdles.

In its investor call, MSIL stated that, given the demand for hybrid cars, the company is developing a small hybrid car.

It also said that for FY2026, the company plans a capital budget of Rs 8000-9000 crore, however the company is in no hurry for a second plant at Gujarat as there is not enough demand.

On a question on the boost in sales of small cars because of the hiked income tax slab, the company raises doubts that it will have any major impact on sales of small cars.

MSIL also said that the company is focusing on safety issues, and said that from the beginning of this year, all its cars have had six airbags

On a question on US tariff impact on MSIL, it says, "We don't export to the US, won't be hit by global uncertainty"

Maruti Suzuki currently holdsa retail market share of around 41 per cent and aims to increase it gradually.

- ANI

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Reader Comments

R
Rahul K.
Maruti has always been the people's car company. Even with domestic demand slowing, their strong export game and focus on safety (6 airbags standard now!) shows they're thinking long-term. The E-Vitara launch could be a game changer! 🚗
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Priya M.
I appreciate that they're being realistic about demand instead of over-expanding. That Gujarat plant decision shows good business sense. But I wish they'd move faster on EVs - the small hybrid is a start but India needs more affordable electric options.
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Sanjay T.
The entry-level segment slowdown is worrying. For middle-class families, Maruti's small cars have been the first choice for decades. If people aren't buying these, it says something about our economy. Hope things turn around soon.
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Ananya R.
Just bought a Maruti CNG last month! Their focus on alternative fuels is smart. With petrol prices so high, more people will switch. 700k CNG target seems ambitious but achievable. Good to see an Indian company doing well globally too 🇮🇳
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Vikram J.
Respectful criticism: While their export strategy is good, Maruti needs to work on premium feel in interiors. Even their new SUVs feel cheap compared to rivals. For the prices they charge now, fit-finish should be better. The tech is also lagging behind competitors.
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Neha P.
The Jimny is so cute! 🥰 Glad it's doing well in exports. Wish they'd market it more aggressively here in India though. It could be their Jeep rival if positioned right. Overall, Maruti seems to have a balanced approach in these uncertain times.

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