Maruti Suzuki VictorisMaruti Suzuki expects to gain around 2 percentage points in the market share during the first quarter of FY27 to 41 per cent, buoyed by increased demand in the rural market, even as the country’s largest carmaker struggles to regain its once-dominant position in the passenger vehicle market, where it commanded over 50 per cent of the market as competition heats up.
“In the quarter (Q1 of FY27), we are very sure we are going to have a gain of at least 2 per cent in both wholesale and retail,” said Partho Banerjee, Senior Executive Officer, Sales & Marketing, MSIL during the monthly media briefing.
In the June period, total domestic passenger vehicle sales stood at 1,50,150 units, its highest-ever sales for the month and quarter, despite losing production due to a planned week-long shutdown for maintenance, the company said.
In FY26, the carmaker’s market share reduced to a 13-year low of 39.26 per cent, as per media reports. The company accounted for nearly 51 per cent of the PV market in the country in FY20, according to SIAM data.
To regain the lost ground, the company is expanding its portfolio across fuel types, including flex fuel vehicles, and is deepening its retail presence along with recent production capacity expansion.
According to the top management, key growth drivers for the June period was the rural market, which continued to outpace urban demand. The rural market grew 45 per cent in the last month, accounting for approximately 53 per cent of its total sales for the period.
“All cylinders are firing. Be it the rural or the urban market, we are seeing very good growth across all the markets. Even in the export market also, I think we are doing pretty well,” he added.
Exports remain resilient
India’s largest automaker has also highlighted a strong push for alternative fuels such as CNG models which accounted for 41 per cent of its overall sales during the quarter, and nearly 42 per cent in June. SUVs contributed 30 per cent of its overall volumes. Maruti Suzuki expects industry demand to remain healthy aided by tax relief measures, lower interest rates and improving rural sentiment. However, the management cautioned about the weak Southwest monsoon and geopolitical tensions in West Asia.
“The US-Iran war coupled with the weak monsoon presents a cautious picture for the industry,”Banerjee added.
However, exports maintained a healthy growth of 13 per cent with 42,768 units sold in June 2026, as against 37,842 units in the same month last year despite the geopolitical uncertainties. The Gurugram-based company said shipments to the Middle East have continued through alternative shipping routes to minimise disruptions.
“The Middle East continues to be an export destination. It’s not that our exports have become zero in the Middle East. We continue to export, although with a longer route through the Cape of Good Hope and the Mediterranean into the Red Sea. Fortunately, despite the war situation, thanks to a diversified portfolio across 100 countries, we were able to clock 13 per cent growth in June over the previous year,” added Rahul Bharti, Senior Executive Officer, Corporate Affairs.
