Maruti Suzuki revises EV launch plans and scales back sales targets

Suzuki Motor Corporation, the parent company of Maruti Suzuki, has indicated a rethink of its India strategy in its latest Mid-term Management Plan, citing a decline in market share. As part of this revision, the company has lowered its long-term sales outlook by 15 percent and reduced the number of electric vehicles planned for India to four by FY2031, down from the six models announced earlier.

Four Maruti EVs planned by FY2031

Maruti Suzuki now plans to introduce four electric vehicles in India by FY2031. This is a reduction from the six EVs outlined in the company’s 2023 roadmap. A similar adjustment has been made to Suzuki’s Europe strategy, where the planned EV count has also been reduced from five to four models.

The first of these will be the Maruti e Vitara, with prices expected to be announced in March. While Maruti Suzuki has not officially confirmed the remaining three EVs, industry expectations suggest that a low cost electric hatchback to rival the Tata Tiago EV could be part of the lineup. An electric MPV, internally codenamed YMC, is also likely to follow the e Vitara.

India sales targets lowered

Alongside the revised EV roadmap, Suzuki has also cut its long-term sales volume targets for India. The company now expects Maruti Suzuki to sell 25.4 lakh units annually by FY2031, down from the earlier target of 30 lakh units announced in 2023. This revision reflects a 15 percent reduction in projected volumes.

Suzuki has cited factors such as the shrinking entry level car segment, slower EV adoption and a moderation in overall growth rates as reasons for the revised outlook. As a result, the company now expects a compounded annual growth rate of 5 percent over the next six years, compared to the earlier projection of 8 percent.

India remains Suzuki’s largest growth market

Despite the downward revision, India will continue to play a critical role in Suzuki’s global strategy. The Indian market is expected to account for 60 percent of Suzuki’s global sales by FY2031, up from 56 percent in FY2024, making it the company’s fastest growing market during this period.

Globally, Suzuki projects its total sales volumes to rise from 31.6 lakh units in FY2024 to 42 lakh units by FY2031, translating into a CAGR of 4 percent over the next seven years.

EV sales targets also trimmed

While Suzuki has retained its target of EVs accounting for 15 percent of total sales, the reduction in overall volume projections effectively lowers its electric vehicle targets as well. Based on the revised numbers, Suzuki is now expected to sell approximately 3.81 lakh electric vehicles in FY2031, down from the earlier estimate of 4.5 lakh units.

This recalibration highlights a more cautious approach to EV adoption, even as Maruti Suzuki prepares to enter the electric vehicle segment with the e Vitara and additional models over the remainder of the decade.