Overview
FY 2024-25 commenced amid a challenging global environment, characterised by geopolitical conflicts, an uncertain economic outlook, and heightened volatility in international financial markets. Despite these challenges, the Reserve Bank of India (RBI) maintained a vigilant monetary policy, firmly aimed at anchoring inflation towards its target. Concurrently, the governments astute food management policy played a crucial role in containing inflationary pressures.
While these coordinated efforts successfully managed the inflation, Indias economic growth faced its own distinct set of difficulties. It initially decelerated and experienced a sharp dip by mid-year. In response to these evolving economic conditions, both the monetary and fiscal policy levers were activated. The government notably accelerated its capital expenditure, while the RBI shifted its monetary policy stance, delivering its first repo rate cut in five years to vigorously support the economic revival. Demonstrating remarkable resilience, the Indian economy gradually picked up pace, with growth steadily improving towards the fiscal years close.
Consequently, India retained its position as the fastest-growing large economy globally in FY 2024-25, a standing it is projected to maintain in FY 2025-26, as affirmed by leading international agencies like the International Monetary Fund.
Industry Overview and Annual Summary
In FY 2024-25, India remained the third-largest passenger vehicle market globally, with over 4.3 million units sold. However, growth slowed to about 2% from 8.2% the previous year. While at the start of the year, a high base and affordability issues in non-premium hatchbacks were expected to affect growth, the external factors such as the heatwave and national elections, led to lower showroom footfalls in the first quarter, further affecting the demand. As demand weakened, inventory levels rose across the industry, leading to an increase in promotional spending. Although sales revived during the festive season, the recovery was largely driven by these incentives.
SUVs continued to dominate, accounting for over 53% of PV sales, while hatchbacks and sedans, especially entry-level models, saw declining demand due to affordability challenges. Historically, PV sales grew at 1.5 times the GDP growth, but despite a 6.5% GDP growth in FY 2024-25, PV sales remained flat, underscoring the affordability issue in the small car segment.
Regarding the powertrain mix, there was a shift in consumer preference towards cleaner powertrain technologies such as Compressed Natural Gas (CNG) vehicles, Strong Hybrid Electric Vehicles (SHEVs) and Battery Electric Vehicles (BEVs), leading to a growth in sales from vehicles belonging to these technologies in FY 2024-25 over the previous year. Consequently, the share of sales of CNG vehicles, SHEVs and BEVs in total PV sales increased in FY 2024-25 compared to FY 2023-24.
In FY 2024-25, the Company achieved key milestones, becoming the first Indian passenger vehicle manufacturer to produce over 2 million units in a year. Total sales reached an all-time high of 2,234,266 units, surpassing 2 million for the second consecutive year. Export volumes hit a record 332,585 units, taking cumulative exports past 3 million. The Company extends its sincere thanks to all stakeholders for their continued support.
Amid slowing demand, the Company prioritised retail sales over wholesales to maintain healthy inventory levels and keep sales promotion expenses relatively lower. New models and special editions helped drive showroom traffic, resulting in faster retail sales growth than that of the industry and a slight gain in retail market share.
In terms of segmental market share, the Company maintains a leadership position across almost all the product segments and holds a strong second place in the SUV category, with a narrow margin to the top spot. Going forward, with a strong product line-up in SUVs, the Company is committed to achieving a leadership position in this segment as well.
The Companys range of CNG vehicles continued to experience robust growth. Supported by its parent, Suzuki Motor Corporation, the Company made significant improvements in reducing product carbon footprint and enhancing safety. The Company introduced an all-new advanced Z-series powertrain for superior fuel efficiency and reduced emissions. At present, the Company offers a diverse portfolio of 14 models with 6 airbags as a standard feature across all variants. Furthermore, well ahead of regulatory requirements, Maruti Suzuki offers Electronic Stability Control (ESC) as a standard feature across all variants and models, the widest portfolio in the country. The Companys fleet is fully compliant with key Indian emission and safety regulations, including the Corporate Average Fuel Economy (CAFE Phase 2).
In its pursuit of improved efficiency across business operations and to enhance customer convenience, the Company continued its focus on digitalisation during the year. Details of these efforts will be elaborated in subsequent sections.
The Company has unwaveringly pursued its commitment to sustainability by building resilient ecosystems where economic growth with strong governance practices, environmental stewardship, and human development go hand in hand. At the heart of the business lies a fundamental belief that progress must be inclusive, and growth must create value not only for shareholders but for all stakeholders. The Company, since its inception, has viewed that sustainable practices and business performance are interdependent on each other. This integrated approach has empowered the Company to continuously strengthen its competitive advantage and also enabled it to build agility in adapting to evolving market dynamics. In terms of environmental sustainability, Suzukis basic philosophy of
‘Sho-Sho-Kei-Tan-Bi enables maximising resource utilisation and helps reduce waste. Along with this, the Company promotes circularity in its business by practising the principles of 3R (Reduce-Reuse-Recycle) and utilising renewable energy. In terms of social sustainability, the Company places utmost importance on empowering people be it customers, employees, local communities, youth, or human resources of value chain partners. The Company invests in skill development, road safety, gender diversity & inclusion, strengthening local supplier ecosystems, and people development, among others. This describes the major sustainability interventions.
Further details on the sustainability performance can be accessed through the disclosures specified in the Integrated Reporting section and the Business Responsibility and Sustainability Reporting (BRSR) section. The Company has prepared the Business Responsibility and Sustainability Report for FY 2024-25 in compliance with the format prescribed. Kindly refer page 256 to access BRSR section.
In FY 2024-25, the Companys performance should be viewed in a broader context beyond the domestic market. Unlike many OEMs, the Company has strategically diversified its markets and customer base, reducing exposure to fluctuations in the domestic market. While domestic wholesales rose just 0.1%, overall sales grew 4.6%, largely driven by a strong 17.5% increase in exports. This helped maintain optimal capacity utilisation.
In FY 2024-25, the Company improved its operating margin to 10.1% from 9.9% in FY 2023-24. Factors contributing to this expansion included operating leverage, cost reduction programmes, and favourable foreign exchange movements, partially offset by higher sales promotion expenses. Despite tough business environment, the Company was able to deliver relatively better operating margin in the industry.
During the year, the Company took several measures in the journey towards realising its growth strategy for FY 2030-31. The Company,
(i) Operationalised its first plant, having a capacity of 250,000 units at the Kharkhoda facility in Haryana, which is a greenfield manufacturing unit.
(ii) Started preparation to enable the manufacturing of its first BEV, the e VITARA.
(iii) Obtained the Boards approval for the amalgamation of its wholly owned subsidiary, Suzuki Motor Gujarat (SMG) Private Limited, with the Company. The amalgamation was done to simplify the Group structure by eliminating multiple companies in the same business. This amalgamation would improve agility to enable quick decision-making and align the direction of each business unit towards common goals.
(iv) Started construction of the 4th production line, having an annual capacity of 250,000 units at its SMG manufacturing facility. In Haryana, the construction of the second manufacturing plant at Kharkhoda is progressing well. The Board has given approval for setting up a third manufacturing plant at Kharkhoda with a capacity of 250,000 units.
(v) Significantly increased its exports during the year.
Domestic Sales
FY 2024-25 was a landmark year for the Company as it achieved its highest-ever annual sales, reaffirming its leadership in the Indian passenger vehicle market. Notably, seven out of the top 10 best-selling cars in India were Maruti Suzuki models.
Despite a challenging demand environment, the Company focused on increasing retail sales while calibrating wholesale dispatches, resulting in its highest-ever retail sales and a marginal improvement in retail market share to 41.4% in FY 2024-25.
To counter subdued consumer sentiment and maximise its retail performance, the Company launched two new models and multiple special editions across its product range to create excitement in the market and attract showroom footfalls. New model introductions during the year are:
The 4th Generation Swift – A bold, progressive design built on Suzukis 5th generation heartect platform, coupled with an advanced Z-series engine providing lower carbon emissions with the highest fuel efficiency in its segment. The Swift, for the first time, features a dashboard, which is tilted at an 8-degree angle, enhancing its driver-centric design. Active and passive safety features such as 6 airbags, Electronic Stability Control and Hill Hold Assist were offered as standard features across all variants.
The 4th Generation Dzire – A first in its segment to offer features such as an electric sunroof. Besides, the product features, Head-Up Display, 6 airbags, a 360 view camera, Electronic Stability Control, Hill Hold Assist, Suzuki Connect, 10-inch infotainment system and advanced LED crystal vision headlamps. The all-new Dzire also secured a 5-star safety rating in BNCAP (Bharat New Car Assessment Programmes).
Throughout the financial year, the Company also introduced special edition models across its product range. The Dream Series Edition for Alto K10, S-Presso, and Celerio featured enhanced safety, best-in-class mileage, and stylish accessories. The WagonR Waltz Edition featured trending upgrades to its exterior and interior accessories. The SUV lineup also saw exclusive refreshes, including, FRONX Velocity and Brezza Urbano Limited Edition with advanced tech and styling, and the Grand Vitara Dominion Edition with premium accessories across all variants.
The Company intensified its marketing campaigns and outreach initiatives to build customer engagement and strengthen brand connect, leading to a 7% growth in enquiries. In FY 2024-25, the share of first-time buyers remained nearly the same as that in FY 2023-24, indicating ongoing affordability challenges for entry-level car buyers. Historically, the entry-car segment attracted a higher proportion of first-time buyers. The lower participation of first-time buyers was a major factor in the low growth of Indias PV industry in FY 2024-25. Notably, the first-time buyer segment has been declining since FY 2018-19. In FY 2024-25, the PV market was largely driven by replacement and additional buyers.
The Company responded effectively to the rising consumer preference for SUVs. The Company introduced special editions across its top-selling SUV brands. As a result, the contribution of sales from SUV models in overall PV sales for the Company in domestic market rose to 28% in FY 2024-25, compared with 25% in FY 2023-24. With this, despite intense competition, the Company could nearly maintain its SUV market share.
command 70.6% market share in the CNG vehicle segment. The increase in CNG infrastructure in Southern and Eastern India has significantly boosted demand for CNG vehicles. Looking ahead, the Company is optimistic about leveraging the expanding CNG infrastructure to maximise CNG vehicle sales.
Consumer preference towards CNG vehicles continued to rise in FY 2024-25, with the Companys CNG vehicle sales growing by 28% (y-o-y). This resulted in one out of every three vehicles sold by the Company being CNG-powered. This growth was largely driven by the Governments efforts to expand CNG infrastructure across the country.
The Company, an early adopter of factory-fitted CNG powertrain technology in India, offers CNG options in 14 out of its 18 models, the highest by any OEM in India. This enabled the Company to
In FY 2024-25, sales of Strong Hybrid Electric Powertrain Vehicles (SHEVs) grew by over 27%, supported by state government incentives and road tax waivers. SHEVs offer 25%-44% higher fuel efficiency than conventional Internal Combustion Engines, significantly reducing carbon emissions. SHEVs have the potential to be scaled up quickly if the government provides support and helps increase the share of green vehicles in a market currently dominated by pure Internal Combustion Engine vehicles. Faster transition towards green vehicles would accelerate the industrys decarbonisation efforts.
Overall, the customer preference towards green vehicles increased significantly during the year. The share of sales from green vehicles comprising CNG vehicles, mild hybrids and strong hybrids increased to over 48% from about 42% in the previous year.
In a constant endeavour to improve convenience and offer a better experience to customers, the Company added 372 sales outlets in FY 2024-25, primarily in non-urban markets. Sensing the non-urban market opportunity very early in the industry, the Company has been expanding its network over the years.
The Company also launched the innovative NEXA Studio format – a compact, scalable sales model designed to deepen market penetration and redefine the retail experience.
With over 2,200 outlets in non-urban markets across the country, the contribution of sales from these markets to overall sales increased to over 48% in FY 2024-25 compared to about 45% in FY 2023-24.
To enhance customer experience in sales processes, the Company expanded its digital footprint. Advanced digital tools enabled innovative customer engagement approaches. The virtual showroom, available on VR platforms like NEXAVERSE and ARENAVERSE, offers an immersive experience, allowing customers to explore and customise vehicles from the comfort of their homes. Featuring 3D visualisations and interactive tools, these platforms help customers make informed purchase decisions for all models and variants within the ARENA and NEXA sales channels.
To further boost digital engagement, the Company introduced an AI-powered virtual assistant on its website, available 24/7 to assist with queries and navigation. Additionally, a WhatsApp chatbot was launched to enhance customer interactions, providing instant personalised assistance for both sales and service.
The Company has digitalised 24 out of 26 customer interaction points while buying a car. The remaining two interaction points are the test drive and delivery of the vehicle.
The ‘Maruti Suzuki Smart Finance (MSSF), which offers online, end-to-end car finance, has achieved a significant milestone of disbursing over 2 million loans since its inception. In FY 2024-25, nearly 39% of the customers sourced their finance for buying cars through the MSSF platform compared with 37% in FY 2023-24.
Light Commercial Vehicle (LCV) Segment
The Company has one model, ‘Super Carry in this segment. In FY 2024-25, the Company recorded sales of 34,492 units in the LCV segment, through its 373 commercial channel sales outlets across 267 cities. CNG powertrains accounted for nearly 82% of total Super Carry sales, reflecting the growing preference for affordable and sustainable energy solutions.
Pre-owned Cars
The demand for pre-owned cars continued to rise, and the Company achieved its highest-ever pre-owned car sales. The True Value channel sales grew by nearly 2.3% in FY 2024-25. A healthy pre-owned car segment drives new car sales through trade-ins, prompting the Company to expand its pre-owned sales outlets. During FY 2024-25, the Company added 56 independent True Value sales outlets.
Exports
In FY 2024-25, the Company achieved historic milestones in export sales, with an annual sale of 332,585 units, marking a 17.5% y-o-y growth despite a challenging global demand environment. The Company maintained its position as Indias leading passenger vehicle exporter for the fourth consecutive year, holding a 43% share in PV exports from India. Notably, its export volume surpassed 3 lakh units in both the calendar year and fiscal year for the first time. Aligned with the Government of Indias ‘Make in India for the World vision, the Company is committed to increasing its exports.
Since its inception, the Company has exported over 3 million units to about 100 countries of the world. The Company started exporting way back in FY 1986-87, and since then, its products have earned the acceptance and appreciation of global customers for their high quality, advanced technology, reliability, superior performance, and affordability. The support of the parent company, Suzuki Motor Corporation (SMC) has been vital in this achievement. SMC has provided the Company with strong technological support and also helped leverage its vast global network to increase exports.
In FY 2024-25, the Company expanded its export footprint by commencing exports of FRONX and Jimny 5-door to Japan, with both receiving an overwhelming response. This achievement reinforced the success of the Make in India initiative. For the year, FRONX became the largest exported model for the Company. Jimny emerged as the second-most exported model for the Company, following its resounding success in markets like Mexico, Australia, and South Africa. Its performance in Japan mirrored this trend, with an unprecedented 50,000 orders placed within just four days of launch.
During the year, the exports to Latin America and the Oceania grew faster compared with the exports to Africa and the Middle East, and the ASEAN. SMCs distribution network and its continuous efforts to keep enhancing the capacity and capability of the network, coupled with the expansion of product portfolio, helped the Company to cash in on opportunities as the demand environment turned favourable in some of the markets. Additionally, the OE supply of vehicles to Toyota through SMC in the African market also helped grow the export volume.
With strong support from Suzuki Motor Corporation (SMC), the Company continues to broaden its export portfolio, enhancing its presence in global markets. At present, the Company exports 17 models to about 100 countries. The Companys exports span its entire product range, from the entry-segment Alto to its premium SUV, Grand Vitara.
In FY 2024-25, the Companys PV export volume grew by 17.6% while that of the rest of the industry grew by 12.5%. Also, for the Company, its export sales volume grew compared to its domestic market. As a result, the contribution of sales volume from exports to the total sales volume of the Company increased to 15% in FY 2024-25. In FY 2025-26, the Company is optimistic about its export performance and expects a strong volume growth.
Service
The service function of the Company goes all-out to provide a hassle-free ownership experience and peace-of-mind to customers throughout the ownership journey through its i) Vast and well-penetrated service network across the country ii) Quicker, affordable and satisfactory periodic maintenance and vehicle repairs iii) High product reliability coupled with comprehensive warranty, extended warranty and customer convenience packages iv) Round-the-clock emergency support and service at the customers doorstep
In FY 2024-25, the Company further strengthened its service network by adding 460 service touchpoints, ensuring greater accessibility across urban and rural areas. With growing similarities in consumer preferences over urban and non-urban centres, to ensure that the Companys premium service offerings reach even remote locations, the compact-format NEXA workshop concept—introduced in FY 2023-24—was significantly expanded. An additional 150 touchpoints were added, bringing the total number of NEXA service touchpoints across India to 500. Overall, Maruti Suzukis service network expanded to 5,424 touchpoints, enabling it to serve a record-breaking 27 million vehicles in FY 2024-25, marking its highest-ever annual service load.
Reaffirming its commitment to offer enhanced peace of mind to its customers, the Company has introduced significant enhancements to its warranty programmes. The standard warranty has been extended from 2 years or 40,000 km to 3 years or 100,000 km. Additionally, the extended warranty now covers up to 6 years or 160,000 km.
While the Company has already introduced the Customer Convenience Package (CCP) to minimise the financial burden on customers in case of unforeseen engine failures caused by waterlogging (hydrostatic lock) or adulteration in fuel, this year, the Company added Rodent protection to this scheme and increased the scheme coverage for a period of up to 10 years. So far, no insurance product in the country provides coverage against such damages. Unique in the market, this scheme has been well-received, with over 3 million customers opting in. To increase accessibility, the Company also introduced interest-free EMI options for purchasing the Extended Warranty and CCP, available online and at workshops.
To minimise vehicle damage during adverse weather events like rains and floods, the Company collaborated with the Indian Meteorological Department (IMD) to provide extreme weather alerts, helping customers protect their vehicles. Additionally, the Company partnered with AccuWeather to enhance this alert system. In FY 2024-25, over 17 million alerts were sent to customers.
To enhance service efficiency and convenience, the Company has pursued digitalisation programmes. For dealers, in the recent past, the Company introduced the CRM tool, Dealer Experience Centre (DExC), enabling customised service recommendations through preferred communication modes. For customers, an AI-driven chat and voicebot offer features such as Anytime Assistance, regional language communication, and digitalised job cards. Embedded Machine Learning provides comprehensive support tailored to individual needs.
To ensure high-quality service and customer satisfaction, the Company trains workshop personnel on the global standards of the Suzuki Service Qualification System (SSQS). The Company implemented an online training model, allowing real-time, resource-efficient skill development for workshop personnel. This initiative enabled 45% of training sessions to be conducted online, benefiting over 40,000 participants. In FY 2024-25, over 28,000+ service partners and workshop personnel were upskilled in cutting-edge technologies, behavioural competencies, and soft skills. The Company successfully upskilled over 92% of its total workshop personnel in FY 2024-25.
Furthering its commitment to sustainable operations, the Company promotes the use of renewable electricity and encourages dealer partners to maximise such measures. In FY 2024-25, over 90 dealer service workshops were operating on rooftop solar power, contributing to 5% of the total service load.
Aftermarket Parts and Accessories
A key factor in enhancing customer satisfaction during vehicle ownership is ensuring aftermarket parts and accessories are available at the right time, place, and price. The increasing vehicle parc and over 95,500 parts create operational challenges. To address this, the Company has implemented advanced demand projection techniques, digitalised inventory management, and expanded independent retail outlets and regional distribution centres, under a hub-and-spoke model. Consequently, the parts distribution network expanded to 1,377 in 2024-25.
The Company accords utmost importance to the safety of vehicles through the use of genuine parts. Therefore, maximising the reach and availability of Genuine Parts to end customers is a key focus area. To achieve this, in addition to thousands of physical touchpoints across India, the Company is further leveraging digitalisation initiatives.
The Company recently launched the ‘Intellisales mobile app (B2B) to empower part distributor sales executives, transforming aftermarket parts ordering. This platform allows small orders from independent workshops, retailers, and traders. Additionally, the ‘Parts Kart app (B2B) enables indirect channel partners to place direct orders with the Company in real-time, reducing dependency on sales executives and increasing convenience. To enhance customer convenience, the Maruti Suzuki Genuine Accessories (MSGA) and Maruti Suzuki Genuine Parts (MSGP) websites (B2C) were significantly improved, making it easier for customers to explore and order parts from home. E-commerce via the MSGA website expanded to 596 cities, up from 450, and the MSGA range is now available on the Maruti Suzuki mobile app, further improving accessibility.
To highlight the importance of using genuine parts for vehicle safety, the Company launched multiple campaigns through physical events, traditional media, and social media.
New-age customers seek unique personalisation, comfort, convenience, and luxury to transform ‘A Car to My Car that reflects their individuality. To meet this growing demand, over 470 new accessories were added under MSGA this year to fulfil customers car personalisation needs.
Developing the capabilities of channel partner employees is essential for delivering high-quality customer experiences. To achieve this, the Company launched a structured training and certification programme for Dealer Spare Parts Managers, covering systems, processes, and soft skills. Over 1,450 dealer personnel were trained through this programme. Additionally, the Company introduced an end-to-end learning platform on the Learning Management System (LMS) to educate channel personnel more quickly, efficiently and conveniently.
Operations
In FY 2024-25, the Company achieved a historic milestone by manufacturing over 2 million vehicles, the highest annual production volume in its history, making it the first OEM in India to cross this mark in a single financial year.
This achievement is notable given the rising complexities in the manufacturing environment, including increased scale, expanded product lineup, and powertrain options, additional features, and varying regulations across nearly 100 export markets. The Company offers 18 models with over 650 variants, each requiring different production protocols, supplier ecosystems, and technical competencies, all seamlessly integrated into its manufacturing system.
Domestically, the Company navigated a volatile demand environment and shifting consumer preferences towards larger cars. When there are large variations from quarter to quarter, it is not easy to manage production. The effect of volatility is felt across the value chain (suppliers, dealers, logistic service providers), which the Company has to manage to avoid any disruption in the value chain.
Historically, the Companys production capacity has been oriented towards smaller cars. However, it swiftly aligned with emerging market needs while maintaining efficiency.
Behind this nimbleness stands the Companys agile manufacturing systems, robust change management processes, and adaptive production planning. This flexibility is powered by a skilled workforce, whose continuous upskilling in emerging technologies ensures high productivity and quality. The strong synergy between human capital and operational agility remains central to the Companys manufacturing resilience.
Moreover, rising complexity calls for continuous strengthening of the quality management system and processes. Customer feedback is essential in improving product quality. To this end, in addition to feedback from domestic and export markets, the Company collaborates with SMC to gather insights on products sold in SMCs export markets. The Company has begun using this holistic market feedback to enhance product quality. This approach will help the Company not only prevent the generation of defects but also improve product reliability, durability, and ultimately, customer satisfaction.
To achieve tighter tolerances and at the same time ensure defect-free products, the Company leverages new technological solutions such as Industry 4.0 and 5.0 frameworks, machine vision systems, and digital tools to continuously monitor and maintain process quality parameters.
Inspection systems are increasingly being shifted to the source (point of manufacturing) to prevent the outflow of defects. This significantly reduces the time required for any corrective action, leading to resource optimisation.
Considering Indias potential and export opportunity, the Company has laid out a capacity expansion roadmap to scale production to 4 million units per annum by FY 2030-31. In April 2024, capacity at the Manesar facility was increased by 100,000 units, taking its total capacity to 900,000 units per annum. Further, in February 2025, the Company commissioned a new manufacturing facility at Kharkhoda, Haryana, with an annual capacity of 250,000 units. Construction of a second plant with a similar capacity is underway. Additionally, expansion plans are in progress for the Companys SMG facility to support future growth. In a continuous effort to enhance flexibility, the existing plant in SMG is being upgraded to manufacture the first EV of the Company. Also, another plant with 250,000 units is being constructed in SMG, which is designed to manufacture all powertrains offered by the Company. All new plants of the Company are being designed to handle multi-powertrain options and the demand variation in the market.
Conservation of Natural Resources and Environment Protection
Responsible Consumption of Resources
Optimising resource efficiency is central to the Companys value creation and sustainability strategy. Suzukis core philosophy of ‘Sho-Sho-Kei-Tan-Bi, meaning ‘smaller, fewer, lighter, shorter and beauty focuses on improving resource efficiency and reducing waste by minimising size, quantity, weight, and time while maintaining quality and customer satisfaction. This approach conserves natural resources and promotes responsible consumption of finite materials. The Companys average weight of the cars sold in India is about 20% lower than that of the industry. While doing so, the Company also enhances the safety performance of its products by using Ultra and High Tensile steel. This holistic approach ensures that the Company is using fewer materials, which in turn ensures lesser energy requirement both in manufacturing and in use, ultimately lowering the products Green House Gas emissions throughout its lifecycle.
The Company actively practices circular economy principles, including increasing reliance on renewable energy, the 3Rs (Reduce, Reuse, Recycle), and waste elimination. By adopting a multi-powertrain strategy, the average carbon emission of the Companys fleet is significantly lower than the industry average. Not only that, but the Company is also consistently outperforming its Corporate Average Fuel Economy (CAFE) target.
The Companys commitment to preserving natural resources is evident at every stage, from product design to manufacturing, distribution, and end-of-life management. The Company is dedicated to supporting Indias Net Zero emissions target by 2070.
Design for Recycling
With the objective of preventing vehicles from being discarded as waste at their end-of-life, the Company designs them for maximum recyclability and recoverability. Currently, all vehicles manufactured by the Company are at least 92% recyclable and 98% recoverable.
Shift to Renewable Energy
The Company undertook a major expansion in solar power capacity in FY 2024-25, increasing its installed solar power capacity to 78.2 MWp from 43.2 MWp in the previous year. This expansion resulted in the avoidance of 34,482 MT of CO2 emissions in FY 2024-25. The Company sources green energy at its Gurugram facility from Haryanas state electricity distribution company, avoiding an additional 25,055 MT of CO2 emissions. Overall, nearly 16% of the electricity requirement was met through renewable sources in FY 2024-25.
Going forward, the Company plans to increase its solar capacity to 319 MWp by FY 2030-31, with an investment of over I 925 crore. This will likely increase the share of renewable energy in total electricity consumption to 85% by FY 2030-31.
Promoting the 3R Principle – Improving Raw Material Efficiency and Circularity
The 3R (Reduce, Reuse, Recycle) principle is integral to the Company. It recycles 100% of the metallic scrap, such as steel and aluminium, generated during car manufacturing. The Company promotes yield-improvement activities to optimise the use of raw materials like steel and aluminium. The state-of-the-art sewage treatment plants enable the recycling of water. The Company recycles 100% of its used water, meeting two-thirds of its water requirements for car manufacturing through this process. Using railways for car dispatches, the Company further reduces fuel use and reduces CO2 emissions in its logistics operations.
To encourage commodity recycling, the Maruti Suzuki and Toyota Tsusho Groups Vehicle Scrapping and Recycling unit began operations in 2021. The facility provides an easy, eco-friendly solution for customers to scrap vehicles and can process 24,000 vehicles annually.
To reduce packaging plastic consumption, it has adopted the ‘Eliminate-Alternate-Reduce (EAR) strategy, with over 33% of packaging material for Knocked Down (KD) kits and components being reused. In FY 2024-25, the Company enabled recycling of more than 2,370 MT of packaging plastic.
Additionally, the Company has implemented an Extended Producer Responsibility programme to recycle plastic packaging used in aftermarket parts and accessories and manage battery waste.
Environment Protection
Regarding environmental protection, the Company not only complies with laws and regulations but also strives to exceed them. Initiatives at Tier-1 suppliers facilities focus on education and best practices to limit hazardous substances, with regular audits conducted. The Company has contractual agreements and green procurement guidelines for suppliers, ensuring effective implementation through established control procedures. The Company adopted the globally acclaimed International Material Data Systems (IMDS) tool to control the use of Substances of Concern (SoCs). It has adopted eco-friendly waste disposal methods, including hazardous waste, and has been practising Zero Waste to Landfill for over a decade.
The Companys ESG Performance Section elaborates on the initiatives undertaken in this section.
Safety
The Company is dedicated to fostering a strong safety culture through proactive leadership and frontline engagement. Safety is seen not just as compliance but as a strategic imperative for employee well-being and operational excellence.
Supervised by the MD & CEO, the three-tier safety committee system has been crucial in enhancing safety governance and promoting a safety-first mindset. Collectively, these committees held 125 meetings in FY 2024-25, driving improvements in both occupational and non-occupational safety areas.
Recognising the importance of participative decision-making, the Company encourages workforce involvement in safety committees, audits, and continuous improvement programmes. Frontline employees contributed over 248,000 safety improvement suggestions during the year, reflecting the depth of engagement and shared ownership of safety outcomes. The Company has institutionalised the reporting of near-miss incidents as a key preventive tool. In FY 2024-25, 1,224 near-misses were reported and addressed with timely countermeasures.
To reinforce a strong safety culture, over 43,400 employees, including non-regular employees, comprising 94.6% of the total workforce, received structured training on key safety aspects such as fire and electrical safety, emergency response, and first aid. During its annual Safety Month, the Company conducted awareness initiatives for employees and their families to promote behavioural change and adherence to safety norms. The Company also engaged with Tier-1 suppliers and dealer partners, sharing best practices to foster a broader culture of safety across the extended value chain. The Company also conducted ‘Nukkad Natak (street play) to engage and create awareness regarding the importance of adhering to safety guidelines.
In its commitment to road safety, the Company introduced a mobile app to improve driving behaviour among its workforce. Using GPS, accelerometer, and gyroscope sensors, the app records the behaviour of the driver on indicators like over-speeding, sudden braking, hard acceleration, sharp cornering, and distracted driving. Based on profiling of the drivers driving behaviour, the app also provides personalised training modules.
To drive engagement and promote safe driving, the platform includes gamified elements such as leaderboards and peer benchmarking through safe driving contests. This approach encourages healthy competition and continuous improvement in driving discipline. By integrating technology with behaviour-based interventions, the Company aims to reduce road safety risks, enhance stakeholder well-being, and reinforce its commitment to responsible operations.
Quality Assurance
The Company advanced its quality excellence journey, driven by a zero-defect philosophy and an integrated Quality Management System. Amid regulatory shifts, new powertrain launches, and global expansion, it reinforced its commitment to defect-free products through digital tools, customer insights, supplier collaboration, and continuous workforce upskilling, including supplier personnel.
Key Developments in FY 2024–25
• The year was marked by the successful launch of the New Swift and Dzire, equipped with the next-generation Z12E powertrain. These launches reflected not just product innovation, but a comprehensive Quality Assurance ranging from unit-level validation to vehicle-level testing to ensure that the legacy of these iconic brands continues to provide the joy of mobility to customers.
• The validation and benchmarking of e VITARA, the Companys first Battery Electric Vehicle (BEV), further underscored its commitment to meet the diverse needs of various markets and customers. The Company is preparing a diagnostic lab aimed at BEV analysis and for quick resolution in the event of any Quality issue.
• The Company is also proactively gearing up for the upcoming cybersecurity regulations by establishing a Cyber Security Management System (CSMS) and forming an Incident Response Team to handle such issues in the future, ensuring robust vehicle security.
• Export of FRONX and Jimny to Japan, as well as upcoming shipments of e VITARA to Europe, validates the Companys capability and commitment to global quality standards.
The Company also continued the ongoing quality management programmes detailed below to ensure improved quality of products.
Reinforcing Zero-Defect Philosophy Anchored in 4M Approach
The Company is dedicated to ensuring Quality excellence in its supply chain by reinforcing its Zero-Defect commitment through focused interventions across Man, Machine, Material, and Method.
Quality Management System (QMS)
a) ISO 9001:2015- External audit for MSIL was conducted in February 2025 by Vincotte Belgium. Auditors recommended the continuation of the ISO certificate for the Company without any non-conformance. For the sustenance of the ISO 9001:2015 certificate, an external agency conducts audits at regular intervals. All in-house manufacturing facilities of the Company are covered under the scope of ISO 9001:2015 QMS.
b) CoP Audits: For Export models, Conformity of Production (CoP) audits are conducted by external agencies (IDIADA & Vincotte) as per plan. All processes were found to be conforming to requirements.
Recall Management
During the year, in the interest of its customers, the Company recalled some of its vehicles and took immediate corrective measures to reduce inconvenience to customers. The number of vehicles recalled has reduced by 66% over that of last year.
Human Resources
Company Philosophy
The Company constantly strives to promote a safe, healthy, and happy workplace. It creates and instils a culture of partnership among its employees. The empowerment of human resources to acquire knowledge and build capability, grow, and prosper in a healthy work environment is the guiding philosophy of the Companys HR policies. With people-centric policy interventions, a constant two-way communication led by the MD & CEO promotes participative decision-making. A testimony to the participative decision-making is that, in FY 2024-25, the employees provided a record 1 million suggestions to improve systems and processes related to safety, quality, productivity, and cost. Motivated human resources have been making strong contributions in responding to business challenges successfully. Much of the organisational progress in the last 40 years is because of the values and the culture that have been imbibed among its employees.
Listening Organisation
One of the success factors of the Company is its ability to understand the needs, concerns and expectations of its employees and take quick measures to address them. To enable this, the Company has put in place various engagement channels with varied degrees of engagement ranging from survey-based engagement to the highest form of engagement based on collaboration (Refer to the Stakeholder engagement section on page 90 to know more about employee engagement channels). Additionally, to listen to the feedback of the employees on a real-time basis, the Company also has a chatbot, ‘Amber, which is positioned as the Chief Listening Officer. With the superannuation of first-generation employees, the workforce is becoming younger. In line with their needs and expectations, the Company is continuing with its measures such as Working from Home, flexible working hours and improvements in maternity and paternity leave policy.
Employee Health and Well-being
The Company places utmost importance on maintaining and improving the physical and mental well-being of its employees. Over 5,000 employees participated in various health and well-being training programmes in FY 2024-25. To promote the importance of physical health among the employees, including their families, events such as marathons and stepathlons were organised. By collaborating with several hospitals, the Company provides free annual health check-ups for the employees and their spouses. The Company has also tied up with an external partner to provide free online health consultations with the best doctors across India for employees and their families, which includes consultations for mental, emotional and social wellness as well.
Capability Development
During the year, routine training around capability improvement, career development, and transition assistance programmes was conducted. Towards upskilling the workforce (Transition Assistance Programmes) on the new and emerging technology trends such as Industry 4.0, Big Data, Automotive electronics, powertrain electrification, etc. the Company collaborated with the top IITs in India. In addition, utmost importance has been placed on inculcating a digitalisation mindset among employees. The Companys targets to impart at least 4 person-days of training on an average across all categories of workforce. The Company could achieve its training target for FY 2024-25.
The Companys new-age Learning Management System (LMS) was much appreciated by employees. The LMS uses Artificial Intelligence and Machine Learning to recommend relevant upskilling programmes based on the roles and responsibilities of an employee. The employee can also undertake self-paced training programmes through the exhaustive e-learning courses available internally or through external Learning Experience Platforms (LXPs) free of cost. Till FY 2024-25, over 15,300 employees enrolled under various upskilling programmes through LXPs.
Over a decade, the Company has been partnering with various academic institutions to provide access to undergraduate and postgraduate programmes to its employees. Based on employee feedback, the Company introduced new courses, increased the number of institutes it partnered with, and increased the number of available seats, thus benefiiting a larger number of employees. Eligible employees who complete the higher education programmes are considered for promotions to take up higher responsibilities.
Courses |
Courses Taken By |
Number of Employees Benefitted So Far under Higher Education Programmes Offered by the Company |
| Diploma programme | Workers | 780 |
| B.Tech programme | Supervisors | 507 |
| MBA/M.Tech/PhD programme | Managers | 339 |
Total |
1,626 |
Leadership Development
The Company has adopted a holistic approach in developing the future leaders (creating a talent pool) through,
a. Tacit knowledge sharing by Senior Management for grooming existing functional leaders as business leaders
b. Leadership Development journey for employees in middle management to enhance skills in three critical areas - People Management, Commercial Acumen (Financial and Business Acumen), Data-Driven Decision-making
c. Management Development Programmes in collaboration with the premier B-schools in India, such as IIM-A, IIM-B, IIM-C, IIM-L, MDI and ISB
d. Job rotations and entrusting people with bigger responsibilities
Industrial Relations Environment
The Company strives to ensure stable and cordial industrial relations through effective communication, participation of employees in important decisions, and various employee welfare programmes. Regular two-way communication, led by the MD & CEO, with employees across various levels, keeps them informed on the overall business scenario and provides them with a strong platform to exchange views.
Freedom of Association and Collective Bargaining
The Company respects freedom of association and promotes collective bargaining. There are a total of three workers unions. The Company allows collective bargaining and actively collaborates with all the unions. During the year, elections to elect workforce union representatives at the powertrain manufacturing facility at Manesar were conducted in a smooth manner.
Long-Term Wage Settlement
The wage settlement for workers of the Company, which is effective for a period of 3 years between April 2024 and March 2027, was concluded. The agreement was jointly signed and concluded by the management of Maruti Suzuki India Limited (MSIL) and the three representative unions, including Maruti Udyog Kamgar Union, Maruti Suzuki Workers Union, and Maruti Suzuki Powertrain Employees Union. As per the terms of the settlement, there will be an increment in monthly salaries for all workers of the Company spread over a period of 3 years, ensuring a substantial uplift in the overall remuneration.
Besides, there are enhancements to the existing welfare, social security and other benefits. Even for its non-regular workers, the Company undertook a comprehensive revision of its wage and welfare policies.
Compensation
The Company offers industry-leading benefits, with the average compensation being higher than the industry benchmark. The Companys compensation policies are gender-neutral. To improve productivity and help achieve business goals, the Company has also put in place a structured performance-based incentive pay structure that covers all categories of its workforce.
Employee Welfare
The Company values its employees, who are considered to be an essential part of its progress. The Company contributes 1% of the previous years Profit After Tax to a fund exclusively earmarked for employee welfare. The fund is used to provide welfare measures, such as housing loan subsidies, educational support for employees children, developing common infrastructure facilities in employee housing projects, and to provide social security measures, such as post-retirement medical benefits for employees as well as their spouses. At the housing project being undertaken in Dharuhera, Haryana, 289 houses have been delivered to employees.
Overseas Skill Development Training
The Company, in its continuous endeavour to enhance the capabilities of its shop floor workers, has instituted a progressive learning visit policy. This policy is designed to provide valuable exposure and skill development opportunities by facilitating visits to Suzuki Motor Corporation (SMC) in Japan. The initiative underscores the Companys commitment to investing in its human capital, ensuring that workers are equipped with the latest industry insights and best practices. The policy has successfully been rolled out in the current financial year.
Multi-layered Connect
For larger connect and welfare of employees families, the Company has a calendar of events, which includes expert career counselling for employees children, a gala family day, and plant visits for family members. To engage with the families of employees, communication done through an in-house magazine and MD & CEO messages on special occasions plays an important role.
Gender Diversity and Inclusion
The Company promotes gender diversity and provides equal opportunity to all. Various welfare measures are taken to support and encourage female employees. The Company is increasingly deploying female workforce on the production shopfloor. This initiative assumes greater significance given the limited availability of female workforce in the country, especially in the skills that are required for performing production operations. Over the past few years, the Company has taken measures to train women on the shop floor-specific skillsets. The Company is targeting to achieve a minimum of 20% representation of women among total new hires in FY 2025-26 for its regular employees.
Grievance Redressal Mechanism
To address any grievances reported by its workforce, including the temporary workforce, the Company has a well-structured grievance redressal mechanism in place. Periodic grievance redressal camps are organised to address their issues.
Awards and Recognition
Maruti Suzuki has been recognised at the Economic Times (ET) HRWorld EX Awards under the Large-Scale Enterprise Category for Exceptional Employee Experience.
Also, the Company has been recognised with the ET Human Capital Awards 2025 under the Automobile Industry Category for ‘Excellence in Creating a Culture of Continuous Learning and Upskilling.
Supporting Business Partners
The Company has put in place an exclusive organisation to improve the human resource and industrial relations practices of its business partners, such as its suppliers, dealers, and transporters. The interventions are centred around providing relevant skill training. Through multi-stakeholder initiative programmes, the Company focuses on creating a talent pool for its supplier and dealer partners. For more information on the initiatives and outcomes of these programmes, kindly refer to page 73 of the Integrated Report.
During FY 2024-25, the Company provided over 1 million person-hours of training for its employees and the workforce of its business partners.
Engineering
In the Passenger Vehicle (PV) industry, product excellence drives growth and market leadership. As the Indian PV market evolves amid stricter regulations, rising customer expectations, and growing competition, product engineering has become key to differentiation and long-term value. Supported by Suzuki Motor Corporations technical expertise, the Company continues to build capabilities across key areas, including regulatory readiness, electrification, connected technologies, and new-age powertrain development.
The Companys engineering function is working in the following key focus area
1. Introduction of New Products
The Company offers the widest product portfolio in Indias passenger vehicle market, spanning hatchbacks, sedans, SUVs, MPVs, and vans. It remains focused on strengthening its lineup across all segments. In FY 2024-25, full model changes were launched for two iconic models—the all-new 4th generation Swift and Dzire—featuring fresh design, enhanced performance, safety, and feature-rich interiors, while upholding the brands core values of affordability, reliability, and fuel efficiency. Limited editions across segments added variety and freshness. Looking ahead, the Company is actively expanding its SUV range to meet rising consumer demand.
2. Continuously Improving Vehicle Safety
Vehicle safety remains a strategic priority for the Company. With strong technical support from Suzuki Motor Corporation (SMC), significant progress was made in FY 2024-25 to enhance product safety.
Advanced features like Electronic Stability Control (ESC), Anti-lock Braking System (ABS) with Electronic Brakeforce Distribution (EBD), and six airbags were introduced as standard in most models. Notably, the Company is the only automaker in India to offer ESC and six airbags as standard across a wide range, from entry-level hatchbacks to premium SUVs.
A major milestone was achieved by the all-new Dzire, becoming Indias first sedan to earn a 5-star safety rating under Bharat New Car Assessment Programme (BNCAP). The Baleno also secured a 4-star BNCAP rating#. Together, these models account for over one-sixth of the Companys domestic sales.
3. Introduction and Expansion of Advanced Features and Technologies
In line with customer preference, the Company is expanding features and technologies in its offerings.
The Company is enhancing comfort and convenience by introducing advanced features such as next-gen telematics (Suzuki Connect), Head-Up Display, 360 camera, sunroof, ventilated seats, powered tailgate, 9-inch infotainment system, TPMS, full digital instrument cluster, and wireless charger.
In its upcoming BEV, the Company provides Level-2 ADAS features along with innovative additions like a Digital Cockpit with integrated display, Twin-Deck Floating Console, 10-way power adjustable driver seat, sliding and reclining rear seats, and premium ‘Infinity by Harman sound system.
Keeping in mind the varied customer preferences, the Company offers a range of Automatic Transmission technologies—from Auto Gear Shift to 6-speed AT with paddle shifters and e-CVT.
Automatic Transmission and Drivetrain Technologies
| Auto Gear Shift | 4-Speed Automatic Transmission | 6-Speed Automatic Transmission with paddle shifters | e-CVT Technology | Suzuki AWD Allgrip Select | Suzuki 4WD Allgrip Pro | |
| 2022-23 | ||||||
| 2023-24 | ||||||
| 2024-25 |
Refers to the technology available in the products during the particular year #For Adult Occupant Protection
4. Reducing Carbon Footprint of the Fleet
The Company is committed to completely supporting Indias ambition of Carbon Net Zero by 2070 and any intermediate targets before 2070. In the automobile business, the largest share of emissions is from CO2 products. While the Company is focusing on minimising emissions across its business activities, reducing CO2 emissions of its products is one of the top priorities of the Company. As a result, the Companys average carbon emission of its fleet is significantly lower than the industry average. Not only that, but the Company has also been outperforming its CAFE target by a wide margin in both Phase 1 (2017-2022) and Phase 2 (2023-ongoing).
Reducing the overall carbon emissions cannot be achieved until the entire fleet of cars produced is involved in the carbon reduction efforts. While the Company is focusing on BEVs, it might not be able to replace its entire fleet of cars immediately. Though the estimates vary, it would be a reasonable assumption that until 2030, a very high proportion of the car parc in India could be non-BEVs. Any meaningful carbon reduction cannot be achieved if this segment of the car population is not addressed. The car industry needs more solutions that are quickly scalable and affordable to reduce carbon emissions from the entire fleet. For country a wide and diverse market like India, with per capita income less than 10% of that in European countries, it is important to have multiple carbon reduction technologies suiting local context and resource endowment.
In addition to BEVs, the Companys powertrain strategy is to deploy all multiple carbon reduction technologies so that the entire fleet volume is covered. The following chart depicts the Companys target for various powertrain technologies as a % of overall Passenger Vehicle sales volume in India by FY 2030-31.
A) Introducing Battery Electric Vehicle (BEV)
The Company unveiled its first BEV, the e VITARA, at the Bharat Mobility Expo in FY 2024-25. The e VITARA is Suzuki Motor Corporations first BEV offering, and the Company will serve as the global manufacturing hub for the entire Suzuki Group and has plans to export to over 100 countries, a significant boost to the ‘Make in India initiative. Largely supported by the export scale, the Company aims to become Indias largest BEV manufacturer within the first year of production.
The parent company (SMC), to fortify the BEV portfolio, has committed a huge R&D investment. By FY 2030-31, the
Company is expected to launch as many as 4 BEV models (including e VITARA) for the Indian market. The Company aims to be Indias largest BEV OEM in terms of production, domestic and export sales, by FY 2030-31.
B) Proliferation of Strong Hybrid Electric Vehicle (SHEV)
• SHEV will significantly help reduce the carbon emissions of the Internal Combustion Engine (ICE) vehicle without the need for charging infrastructure. SHEVs are self-charging and have the potential to scale up quickly.
• The Company offers SHEV technology in two of its vehicles - Grand Vitara and Invicto
Grand Vitara - Steep Improvement in Fuel Efficiency (in kmpl) using Strong Hybrid Electric Technology
C) Promoting Compressed Natural Gas (CNG) Powertrain Technology
The Company offers 14 CNG variants across its portfolio of 18 models. In FY 2024-25, one in every three cars sold by the Company in the domestic market was a CNG vehicle.
Besides being low-carbon emission vehicles that incur low running cost, CNG fuel vehicles also help in reducing the countrys import bill. This is a win-win situation for the customer, the environment, and the government. With the governments increased focus on expanding CNG distribution infrastructure across the country, the demand for CNG vehicles is growing.
D) Exploring the Use of Biofuels – CBG and Ethanol-based Flex-fuel Vehicles
Given the significantly lower Global Warming Potential (GWP) of biofuels, Compressed Biogas (CBG) and Ethanol-based Flex Fuel Vehicles (FFV) seem to be other promising options driving carbon emission reduction. This is especially because the country has a good amount of the agricultural biomass required to produce these green fuels, which would also be in the interest of Indian farmers. Therefore, promoting biofuels will benefit society and the environment. The Company is exploring all these technologies by undertaking a technical and commercial feasibility study to find the best solution for customers.
In the Bharat Mobility show, the Company displayed Indias first flex-fuel, mass-segment prototype car, the Wagon R FFV. This vehicle will be able to run on an ethanol blend ranging from 20% to 85%. Ethanol fuels are biogenic as they are largely manufactured using plant-based sources. FFV technology can help reduce carbon emissions by ~79% in comparison with vehicles that run on gasoline fuel.
E20 (20% blending of ethanol in gasoline) is already a priority for the government. Currently, 100% of the petrol models offered by the Company are compatible with E20 blending.
E) Reducing Carbon Footprint by Enhancing Fuel Efficiency of IC Engine Vehicles
The Company, with the support of SMC, has been able to progressively improve the fuel efficiency of IC engine vehicles. With the support of SMC, the Company has developed a new Z-series powertrain that provides exceptional fuel efficiency and lower carbon emissions. The All-New Swift and Dzire are being offered with the new Z-series powertrain, which is the one of worlds most thermal efficient engine.
5. Rohtak R&D Centre
The dynamic and evolving regulatory environment demands a strong capacity and capability to simultaneously meet the emerging needs of the market as well as regulatory requirements. The Company is working to meet ever-evolving regulatory requirements for its products, primarily around emissions and safety. The state-of-the-art R&D test track and testing facilities at Rohtak enable the quick evaluation and development of products.
Supply Chain Management
Ensuring the timely availability of components with the right quality remains a key priority in the Companys supply chain strategy. The automotive supply chain is inherently complex and geographically dispersed, with deep interdependencies. Over the past few years, global disruptions driven by the pandemic, geopolitical tensions, and non-trade barriers have significantly strained supply chains, particularly in the availability of electronic components.
The proactive measures undertaken by the Company helped in improving the component availability. This enabled the Company to manufacture the highest-ever annual production volume of over 2 million vehicles in FY 2024-25.
Looking ahead, the supplier partners will play a pivotal role in realising the Companys ambitious goal of manufacturing 4 million units by FY 2030-31. The Company is actively collaborating with the suppliers to design optimal operational configurations that not only support scale but also enhance competitiveness.
ESG Performance in Supply Chain
A) Environment Performance
Car manufacturing has a wide and long supply chain. A substantial portion of value addition occurs within the Companys supplier ecosystem. Therefore, in the Companys journey to drive decarbonsiation in its entire value chain, suppliers play a critical role. The Company regularly monitors the GHG emissions of its Tier-1 suppliers and actively promotes the usage of renewable energy by suppliers. In FY 2024-25, 35% (refer graph below) of the overall electricity requirement of these suppliers was met using renewable sources compared to about 26% in FY 2023-24.
Besides, the Company is proactively controlling the usage of Substances of Concern (SoC) in the vehicles, in line with the global standards. The SOC management of suppliers is assessed periodically by the Company to ensure adherence to SOC requirements. In this regard, the Company conducted 399 supplier assessments in FY 2024-25. Besides, awareness sessions among suppliers are conducted periodically to improve the SOC Management System.
B) Social Performance
The Company, as a part of its supplier assessment framework, has done a robust evaluation of the human resource systems and processes at Tier-1 suppliers, including aspects related to human rights. In FY 2024-25, assessments were conducted for suppliers who contribute over 70% by value of overall component purchase.
Besides, the Company actively promotes the culture of safety among its supply chain. The efforts of the Company towards continuously improving safety performance in its supply chain are given below,
Besides, the Company regularly imparts skill training for the suppliers workforce. In FY 2024-25, the Company imparted over 1,700 training sessions, covering 100% of the Tier-1 suppliers. The training sessions cover topics including cybersecurity, safety, energy optimisation, Process Optimisation, POSH, etc. To know about the capability development programmes undertaken by the Company for the suppliers workforce, please refer to the Integrated Report section, page 73, 75
C) Governance in Supply Chain
With a focus on continuously strengthening the governance in the supply chain, the Company in collaboration with its 30 supplier partners, developed a corporate governance framework in FY 2024-25. This initiative was later expanded to the top-100 suppliers.
The self-assessment framework evaluates performance across four key areas:
1. Enhancing transparency and accountability
2. Proactive risk management and mitigation
3. Promoting sustainable value creation
4. Upholding ethical standards
Cost Optimisation
One of the objectives of the Companys cost optimisation programme is to help offset cost pressure on account of inflation in various cost elements to the extent possible, to maintain stable prices of its products. This customer-centric approach helps maintain competitiveness.
During the year, the Company experienced cost pressure on account of inflation in various cost elements and new regulations. To offset these cost pressures to a certain extent, the Company undertook several initiatives such as the localisation of direct and indirect imports, value engineering and analysis, yield improvement, energy efficiency improvement and tighter control on overheads. The Company continues to collaborate with the supplier partners in various cost-optimisation and efficiency-improvement activities.
The Company was able to achieve a significant amount of cost savings on account of the suggestion scheme through which employees contribute to idea generation and its implementation. During the year, the Company achieved cost savings of I4,904 million on account of such efforts.
Logistics
The Company continues to make strategic progress in transforming its logistics operations to be more sustainable, safe, and competitive. A major thrust area has been increasing the share of rail transport in inbound and outbound logistics, reducing dependency on road-based movement, and thereby lowering carbon emissions.
Leadership in Railway-based Vehicle Dispatches
Over the past decade, the Company has cumulatively dispatched over 2.4 million vehicles via railways. In FY 2024–25, it achieved its highest-ever annual rail dispatch volume at 518,157 vehicles, which is 24.3% of its total dispatch, marking a growth of ~16% over the previous year. This shift helped avoid approximately 180,000 MT of CO2e emissions, when compared to road- based dispatches.
The Company is the first automobile OEM in India to develop in-plant railway sidings at two manufacturing facilities with a combined dispatch capacity of 750,000 vehicles per annum. These sidings are aligned with the Government of Indias PM Gati Shakti initiative and provide seamless rail connectivity to major ports such as Mundra and Pipavav.
1) In FY 2023-24, the Company operationalised Indias first automobile in-plant railway siding at its manufacturing facility in Gujarat, with a capacity to dispatch 300,000 vehicles through railways per annum.
2) In FY 2025-26, the Company commissioned Indias largest automobile in-plant railway siding at its Manesar facility in Haryana, with a capacity to dispatch 450,000 vehicles annually. Once fully operational, this will result in potential savings of 60 million litres of fossil fuel and avoidance of 175,000 MT of CO2e emissions per year.
By FY 2030-31, the Company targets to increase the share of dispatches in India using railways to 35% of overall vehicle dispatches, compared with 24.3% in FY 2024-25.
Modernisation of the Fleet of Car Carriers
In addition to the reduction of CO2 emissions in the logistics operations, the Company is focusing on limiting mass emissions (NOx/SOx) as well. In this regard, efforts are being made to modernise the fleet compatible with BS-VI emission standard from BS-IV. To promote this, various awareness sessions were done with logistics service providers showcasing the benefits of new-age technology, focusing on carbon emission reduction, low carrier breakdown and low maintenance compared to the old fleet.
Driver Training and Welfare
The Company accords utmost priority to the safety, health, and well-being of its truck driver partners by providing training sessions and conducting health check-ups. During the year, over 241,000 drivers and co-drivers were covered through multiple training sessions. In addition, more than 3,500 drivers underwent free medical check-ups at Company facilities in Haryana and Gujarat, including screenings for diabetes and vision-related conditions.
Financial Performance
The Company registered Net Sales of I 1,451,152 million and Profit after Tax of I 139,552 million, a growth of 5.6% over the previous year.
Table 1: Abridged Profit and Loss Account for 2024-25 (I million)
Parameters |
FY 2024-25 | FY 2023-24 | Change |
| 1 Volumes (Nos.) | |||
| Domestic | 1,901,681 | 1,852,256 | |
| Export | 332,585 | 2,83,067 | |
| Total | 2,234,266 | 2,135,323 | 4.6% |
| 2 Vehicles | 1,257,091 | 1,170,404 | |
| 3 Spare parts/dies & moulds/components | 194,061 | 178,974 | |
| 4 Net sales (2+3) | 1,451,152 | 1,349,378 | |
| 5 Other operating revenue | 67,849 | 59,948 | |
| 6 Other income | 47,504 | 38,548 | |
| 7 Total revenue (4+5+6) | 1,566,505 | 1,447,874 | 8.2% |
| 8 Consumption of raw materials, components & traded goods | 1,081,539 | 1,004,179 | |
| 9 Employee benefit expenses | 61,370 | 54,784 | |
| 10 Finance Costs | 1,931 | 1,932 | |
| 11 Depreciation and amortisation | 31,593 | 30,223 | |
| 12 Other expenses | 198,240 | 186,352 | |
| 13 Total expenses | 1,374,673 | 1,277,470 | 7.6% |
| 14 Profit before tax (7-13) | 191,832 | 170,404 | 12.6% |
| 15 Current tax | 38,418 | 36,311 | |
| 16 Deferred tax | 13,862 | 1,999 | |
| 17 Profit after tax (14-15-16) | 139,552 | 132,094 | 5.6% |
Table 2: Financial Performance – Ratios (As a Percentage of Net Sales)
Parameters |
FY 2024-25 | FY 2023-24 | Change (%) | |
| Material cost | 74.5% | 74.4% | 0.1 | |
| Employee benefit expenses | 4.2% | 4.1% | 0.1 | |
| Depreciation and amortisation | 2.2% | 2.2% | 0.0 | |
| Other expenses | 13.7% | 13.8% | (0.1) | |
| Profit before tax | 13.2% | 12.6% | 0.6 | |
| Profit after tax | 9.6% | 9.8% | (0.2) | |
| Debtors Turnover (No. of Times) | 26 | 34 | -24% | |
| Inventory Turnover (No. of Times) | 31 | 32 | -2.2% | |
| Interest Coverage Ratio | 406 | 491 | -17% | |
| Current Ratio | 0.9 | 0.8 | 9.7% | |
Debt Equity Ratio |
(0.001) | (0.005) | -80% | There is no net debt during the year resulting in decrease in debt equity ratio |
| Operating Profit Margin (%) | 10.1% | 9.9% | 2% | |
| Net Profit Margin (%) | 9.6% | 9.8% | -2% | |
| Return on Net Worth | 15.7% | 18.3% | -14% |
Treasury Operations
The Company has efficiently managed its surplus funds through prudent and cautious treasury operations. The guiding principle of the Companys treasury investments is to keep the safety and liquidity of investment over and above returns. In view of this, the Company invested its surplus funds in debt schemes of mutual funds and fixed deposits with banks. This has enabled the company to earn reasonable and stable returns.
Table 3 lists the investment of surplus funds, while Table 4 lists the return on these surplus funds.
Table 3: Investment of Surplus Funds
(I million)
| 31-03-25 | 31-03-24 | |
| Debt Mutual Fund | 591,567 | 533,203 |
| Fixed Deposits | 9,700 | 4,350 |
| Total | 601,267 | 537,553 |
Table 4: Income from Investment of Surplus Fund
(I million)
| FY 2024-25 | FY 2023-24 | |
| Interest on fixed deposits | 403 | 43 |
Income from investment in debt mutual funds |
44,808 | 36,906 |
| Total | 45,211 | 36,949 |
Foreign Exchange Risk Management
The Company is exposed to the risks associated with fluctuations in foreign exchange rates, mainly on the import of components, raw materials and export of vehicles. The Company has a well-structured exchange risk management policy. The Company manages its exchange risk by using appropriate hedge instruments judiciously, depending on market conditions and the view on currency.
Internal Controls and Adequacy
The Company has a proper and adequate system of internal control to ensure that all assets are safeguarded and protected against loss from unauthorised use or disposition, and that all transactions are authorised, recorded and reported correctly. The internal control system is designed to ensure that financial and other records are reliable for preparing financial information and other data, and for maintaining accountability of assets. The internal control system is supplemented by an extensive programme of internal audits, reviews by management, and documented policies, guidelines and procedures.
Risk Management
Risks Associated with Increased Scale of Operations
The Company aims to significantly increase its production capacity by FY 2030-31. While it took almost 40 years to reach 2 million units, the upcoming production expansion will have to done at a much faster pace. Achieving this growth will require significantly more human capital, financial investment, and technical know-how, along with faster decision-making. Stakeholder partners—suppliers, dealers, and transporters—must also scale in tandem. The Company is actively collaborating with them to anticipate and address the challenges of rapid expansion.
Ensuring Continuity in Component Supplies
With over 400 Tier-1 and nearly 1,300 Tier-2 suppliers across regions, supply disruption remains a major business continuity risk.
In the recent past, driven by pandemic-led disruptions, geo-political tensions and restrictions in terms of non-trade barriers, the Company has been facing supply issues. Through meticulous planning, maintaining constant communication with the top management of suppliers, and developing alternate sources, the Company was able to manage the supply risk and improve the availability of electronic components.
The Company is also running the ‘Vendor Comprehensive Excellence Programme to strengthen supplier capabilities across functions, including risk management. Key focus areas include fire safety, industrial relations, quality, financial prudence, water logging, succession planning, and reducing single-location dependency. Localisation of components remains a core part of the Companys risk mitigation strategy.
Strengthening the Capacity and Capability for Future Product Development
Driven by new model launches, product refreshes, advanced technology features, and expanded regulatory requirements across a diverse portfolio, demand increased for both resource capacity and development capabilities. The Company is enhancing engineering skills and implementing various measures to motivate and retain talent.
Cybersecurity
Over the years, the Company has taken deliberate steps to counter cybersecurity threats by implementing a robust management framework. Key measures include employee education on phishing risks and proactive monitoring through advanced technologies to protect information assets and ensure business continuity.
As cyber threats are growing, the Company has taken decisive steps to strengthen cybersecurity in its supply chain. It has created a cybersecurity assessment framework based on global standards for assessing & improving suppliers. By fostering a culture of awareness and vigilance among suppliers, the Company aims to strengthen its supply chains resilience against potential cyber threats and ensure business continuity.
Safeguarding Consumer and Personal data
By the virtue of its business operations, ranging from manufacturing to sales to service, a lot of personal data gets generated. Therefore, to safeguard the consumer and personal data, the Company strengthens its policies, governance structure and technological solutions from time to time.
For more information on Risk Management, refer to page 100 of the Integrated Report.
Outlook
The Passenger Vehicle (PV) industry witnessed a sharp slowdown in growth in FY 2024-25, with low single-digit growth expected in FY 2025-26 as well. A key concern is declining participation from first-time buyers, primarily due to affordability challenges. Car penetration in India remains low, only ~30 per 1,000 people, yet car purchases are increasingly driven by replacement or additional demand from higher-income households. Today, over 88% of households are excluded from access to safer transport, reflecting a critical gap in social equity.
The entry-car segment, historically the natural choice of first-time buyers, has seen price-points surge nearly 70% since FY 2018-19, largely due to regulatory changes. Reviving this segment is vital to re-engage mass-market consumers and catalyse industry growth.
Going forward, the country has set an ambitious goal of becoming a developed nation (Viksit Bharat) by 2047. The automobile industry is a very large part of the manufacturing sector and has both a responsibility and the opportunity towards this growth. The Company being the largest passenger vehicle manufacturer, will continue to partner with India and play its part in Indias journey towards Viksit Bharat.
As a market leader, the Company with a spirit of making it happen, is focusing on expanding horizons by unlocking new opportunities, through a multi-pronged strategy focused on enhancing presence in several product and market segments. The Company has taken an ambitious view on features and technologies that enhance comfort, safety and driving pleasure, across its product lineup.
Therefore, despite a subdued domestic demand environment, the Company remains committed to its ambitious growth plan of nearly doubling of its annual manufacturing capacity to 4 million units by FY 2030-31 from the current levels.
The Company has maintained its position as the largest exporter of Passenger Vehicles (PVs) from India for four consecutive years, commanding nearly 43% share in Indias PV exports. Backed by Suzuki Motor Corporations support in terms of equipping the Company with a best-in-class global product portfolio, along with a strong distribution network spread across 100 countries, the Company continues to strengthen its competitive position in exports.
Looking ahead, the Company aims to sustain its strong export growth momentum and expects to more than double export volumes from current levels. With its 1st BEV, the Company will resume exports to advanced economies such as Europe. Exports will not only serve as one of the enablers for achieving the Companys growth objective, but also play a pivotal role in Indias emergence as a global automotive manufacturing hub.
Further, the Company has already embarked on increasing its consumer base in India by focusing on diversification in terms of product segments, form-factors, and powertrain technologies. In line with the changing customer preference, the Company with strong support from SMC is working towards strengthening its SUV product lineup across price-points. Besides, with its multi-powertrain technologies, comprising BEVs, SHEVs, alternate fuel driven powertrain such as CNG, CBG and ethanol, the Company would not only empower customer with choices but also help maximise its decarbonisation impact.
Refer, page 60 to know about the targeted powertrain mix by FY 2030-31
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