Domestic sales rose to 564,669 units while exports increased to 103,100 units in the same quarter.India’s largest auto manufacturer, Maruti Suzuki, continues to ride the momentum of GST 2.0, reporting strong demand across segments, including small cars. It has reported a healthy uptick in first-time car buyers, now accounting for almost 47 per cent.
“It used to be around 40 per cent or so. We should assume 47 per cent or something around that now,” Rahul Bharti, Executive Officer, Corporate Affairs at Maruti Suzuki India, said during the Q3 post-earnings call.
Maruti Suzuki, which has reported a consolidated profit after tax (PAT) of ₹3,879 crore for the December quarter and revenue of ₹49,904 crore, currently has a low network inventory of three to four days and a healthy order book of around 175,000 vehicles.
“We had to work on Sundays and holidays to meet demand…network inventory is at just three to four days, with a strong order book of around 1.75 lakh vehicles,” Bharti added.
Ramping up manufacturing capacity
Domestic sales rose to 564,669 units while exports increased to 103,100 units in the same quarter. To address the rising demand, the company is preparing to infuse 500,000 units of annual manufacturing capacity across two new plants in the coming years and a greenfield facility in Gujarat.
“Our second plant at Kharkoda and the fourth line at our existing Gujarat facility will each have a capacity of around 250,000 vehicles, coming on stream in the next few months,” Bharti added. The Kharkoda plant is expected to be operational by April, 2026.
Maruti Suzuki also recently received board approval for its second car manufacturing plant in Gujarat’s Khoraj area near Gandhinagar. This follows an initial MoU signed at the Vibrant Gujarat Summit 2024 and culminates in a formal investment agreement with the state government in January 2026.
The plant involves an investment of ₹35,000 crore and spans 1,750 acres of land allotted by the Gujarat Industrial Development Corporation (GIDC).
Raw material challenges weigh
Despite the positive momentum, the company has flagged ongoing challenges in meeting demand, including raw material availability. Key commodities, including platinum, aluminium, copper, and rare-earth elements used in EV components, remain constrained by global supply chain disruptions. “We are seeing some headwinds in commodities like platinum, aluminium, copper, and rare-earth elements. While the impact on margins has been minor so far, raw material availability remains a key focus for us in the coming quarters,” Bharti added.
The company has reported stronger export growth than the industry, with exports of over 13,000 units of its e-Vitara across 29 countries till December. “The UK is currently our largest export market for the e Vitara,” he added.
The surge demonstrates strong consumer demand for small, compact cars across urban and semi-urban markets.
