Maruti Suzuki’s journey towards adding next million to its annual sales is expected to be faster than previously anticipated, Managing Director and CEO Hisashi Takeuchi said, as the country’s largest carmaker prepares for a fresh phase of expansion led by SUVs and alternative powertrains.
“The journey towards the next million sales milestone appears significantly faster than previously anticipated,” Takeuchi said in his message to shareholders in the company’s annual report for FY26.
Maruti Suzuki took 26 years after entering India to reach its first million annual sales milestone in 2010, while it achieved the two-million mark in 2024. The company sold a record 2.42 million vehicles in FY26, including 447,774 units in overseas markets.
The company expects the overall Indian passenger vehicle market to expand to 6.1-6.3 million units by FY31, with a stronger recovery in small-car demand, prompting it to reassess its longer-term growth targets.
“Presently, we are estimating that the car industry would grow to 6.1 to 6.3 million by FY2030-31 and that the share of the small-car market would grow significantly faster than what had happened in the last five years,” chairman RC Bhargava said in his address to shareholders.
“This could lead to some changes in our longer-term targets,” he added.
The reassessment comes as Maruti accelerates its manufacturing expansion. Work has started on a new plant at Sanand in Gujarat, where the company plans to invest Rs 35,000 crore and create annual capacity for one million vehicles.
Together with expansions at Kharkhoda and Hansalpur, the Sanand plant will take Maruti Suzuki’s installed capacity to 2.9 million units by the end of FY27 and 3.65 million units by FY31.
The company is also preparing to strengthen its SUV portfolio, with seven new SUVs planned over the next five years. The expansion is aimed at capitalising on the continued shift in consumer preference towards SUVs while maintaining its presence across other segments.
At the same time, small cars have begun showing signs of a sharper recovery. Maruti Suzuki’s small-car sales grew 17% in the second half of FY26 and accelerated 35% in the first quarter of FY27 as the company increased production of models witnessing stronger demand.
Overall, Maruti’s sales grew 38% in the first quarter, compared with 28% growth for the industry, Bhargava said. Retail sales had increased 17% in the second half of FY26 following the implementation of revised GST rates on September 22, 2025.
The recovery, however, has exposed a mismatch between production capacity and demand for specific models. Maruti ended March 2026 with 1.9 lakh pending bookings due to inadequate manufacturing capacity for some models.
Bhargava attributed the shortage to production adjustments made over the past several years in response to declining small-car sales and the rapid growth of SUVs.
Maruti is now making its new production lines more flexible, allowing it to switch between platforms and models depending on changes in demand. The company has already started increasing production of small cars in response to the renewed demand.
Alongside its domestic expansion, Maruti is targeting higher exports in FY27 despite challenges in the Middle East. The company exported a record 447,774 vehicles in FY26 and remained India’s largest passenger vehicle exporter for the fifth consecutive year.
Maruti now accounts for almost half of all passenger vehicles exported from India, Bhargava said. Japan has also emerged as the company’s third-largest overseas market.
The launch of the e Vitara has further expanded Maruti’s export footprint, allowing the company to re-enter advanced markets such as Europe and Japan.
“The commencement of e Vitara exports has enabled the carmaker to re-enter advanced markets such as Europe and Japan, while strengthening India’s position within Suzuki’s global operations,” Takeuchi said.
Maruti is also stepping up its focus on alternative fuels. The company’s multi-pathway approach helped it meet its Corporate Average Fuel Efficiency Phase 2 target for FY26 “by a good margin”, Takeuchi said.
The carmaker has set a target of selling nine lakh CNG vehicles in FY27 after CNG volumes rose 58% in the first quarter. It also plans to consume more than 20 tonnes of biogas per day by FY31 as it seeks to expand the role of gas-based mobility in its powertrain strategy.
