Maruti Suzuki expects to increase its market share in FY 24

16 May 2023 , 08:20 AM

Suzuki Motor Corporation (SMC) saw its biggest market share growth in India during the most recent fiscal year. With a flurry of new launches in the quickly expanding sports utility vehicle sector, the Japanese automaker is still optimistic about India’s future prospects despite the current state of the world economy.

Suzuki anticipates that its subsidiary Maruti Suzuki will outperform the competition in the local market this fiscal year. Suzuki’s goal for the current fiscal is to increase global volumes by 6.2%, or 186,000 passenger vehicles.

‘The market growth for Indian automobiles is expected to be +5-7% year on year, and our company’s Indian automobile sales are expected to be higher,’ SMC stated in a presentation to investors.

In the fiscal year that concluded on March 31, the company’s passenger vehicle sales in India surged by 20.5% to 1.65 million units, outpacing those in its home market Japan, where volumes rose by 11.7% during the same period. 

As a result, Maruti Suzuki’s share of parent company Suzuki Motor Corporation’s worldwide sales increased to 54.8% from 50.4% in FY22. The subsidiary’s percentage of SMC’s total global auto manufacturing increased to an even greater level of around 60% from 58.8% the year before. 

In contrast, contribution to net sales increased by more than 600 basis points to 40.8% throughout the studied period.

Undoubtedly, Maruti Suzuki’s market position in the domestic market was impacted by the shortage of semiconductors and the lack of items in the SUV segment earlier in the year. SMC asserted, though, ‘We will try to recover our market share by introducing SUVs.’

At the end of the previous fiscal year, Maruti Suzuki had a market share of around 41% of the Indian passenger car market.

However, the company’s market share in the SUV class has increased as a result of the release of new models. Prior to the release of the new Brezza and Grand Vitara in July 2022, Maruti Suzuki’s market share in the segment increased six times, reaching 17.4% in March 2023.

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