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

Mumbai (Maharashtra) [India], April 28 (ANI): 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 ₹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)