Maruti Suzuki announced on Tuesday that it has achieved a significant production milestone, surpassing two million (20 lakh) units in the country this year. This marks the first occasion that Maruti Suzuki has reached this milestone within a calendar year, and it is also a first for any car manufacturer in India, according to data from SIAM.

As the leading automobile manufacturer in India, Maruti Suzuki revealed that the two millionth unit produced was an Ertiga MPV. The models that have seen the highest production numbers in 2024 thus far include the Baleno, Fronx, WagonR, and Brezza. Notably, 60 percent of these vehicles were produced at facilities in Haryana, while the remaining 40 percent were manufactured in Gujarat. The company operates three manufacturing plants—two in Haryana and one in Hansalpur, Gujarat—capable of producing a combined total of 2.35 million (23.50 lakh) units annually.

Looking ahead, Maruti Suzuki expects vehicle demand in India to continue to rise, prompting plans to expand its annual production capacity to four million (40 lakh) units. A new greenfield manufacturing facility is currently under construction in Kharkhoda, Haryana, with the first phase expected to have an annual capacity of 250,000 units, set to commence operations in 2025. Ultimately, the facility will be able to produce one million (10 lakh) units per year once fully operational.

Founded in Gurugram (formerly Gurgaon) in 1981, Maruti Suzuki maintains a strong position in the Indian passenger vehicle market, despite increased competition from rivals in recent years. In response, the company has diversified its offerings with a greater emphasis on SUVs, including the introduction of the Grand Vitara in the mid-size SUV category. Additionally, niche models such as the Jimny and Invicto MPV have been launched, although their sales figures remain modest compared to their more popular counterparts.

Maruti Suzuki's focus on exports

This year, approximately 40 percent of the vehicles produced by Maruti Suzuki in India were exported internationally. As a result, the company has secured its position as the leading car exporter from India for the third consecutive year. India acts as the hub for exporting around 17 Suzuki models to 100 different countries. The most prominent export models include the Fronx, Jimny, Baleno, Dzire, and Swift.

Maruti Suzuki: Opportunities and challenges

Maruti Suzuki is now targeting a market segment in which it has previously had no involvement: electric vehicles. The e Vitara is poised for its official reveal and launch at the Bharat Mobility Expo scheduled for January of next year. Built on the eVX concept that was presented earlier, the e Vitara will feature a 60 kWh lithium-ion battery pack, with an anticipated range exceeding 500 kilometers per charge. Additionally, the company has announced its intention to introduce six electric vehicles by the fiscal year 2030-31. This strategy aims to position Maruti Suzuki competitively against Tata Motors, the current frontrunners in India's electric vehicle market, while also contending with competitors such as Hyundai and Mahindra, who are preparing to release more electric models.

However, Maruti Suzuki faces a significant challenge with the underwhelming sales of its smaller vehicle offerings. Although models like the Alto K10, S-Presso, and WagonR continue to be integral to the company's sales, their performance has declined compared to previous years. This decline can be attributed in part to the increasing preference for SUV body styles. Furthermore, Maruti Suzuki India Chairman RC Bhargava has previously highlighted the issue of affordability within the sub-₹10 lakh car segment. Nevertheless, he has expressed a positive outlook regarding a potential recovery in the small-car market by the fiscal year 2025-26.

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