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Hindustan Times
a day ago
- Automotive
- Hindustan Times
Maruti Suzuki India eyes 4 lakh exports in FY26 to counter domestic market slowdown
Maruti Suzuki India currently exports to over 100 countries Check Offers Maruti Suzuki India Limited (MSIL) has set an ambitious target to export four lakh units for the current financial year (FY26) with a growth rate of 20 per cent year-on-year. With this, the carmaker targets a 50 per cent market share in the export market from the current 43 per cent. The company noted that the aggressive push is a strategic imperative and is designed to de-risk the company's business plan and offer a shield against potential volatility in the domestic market. The idea behind the approach is already bearing fruit, with exports emerging as a robust pillar of growth amidst the somewhat subdued domestic market performance. The carmaker's export performance has been notably strong in recent months. In May 2025 alone, Maruti Suzuki witnessed an 80 per cent year-on-year growth in exports. Meanwhile, looking at the combined performance for April and May, the exports for the carmaker surged by 50 per cent. Rahul Bharti, Executive Director, Corporate Affairs at Maruti Suzuki India, explained that this vigorous export drive has proven crucial in offsetting a somewhat softer domestic wholesale market, allowing the company to report an overall sales growth of 3.2 per cent in May and 5 per cent for the April-May period, inclusive of exports. Maruti Suzuki's diversified export strategy spans a wide geographical canvas, ensuring resilience across various global economic conditions. The company is present in approximately 100 countries worldwide. Key markets significantly contributing to its export volumes include Africa, Latin America, and Southeast Asia. Notably, Japan has swiftly risen to become the second top destination for Maruti's exports, a testament to the strong reception of specific models there. Also Read : Maruti Suzuki foresees subdued passenger vehicle demand in coming years, increasing challenges looms ahead Other significant markets include Chile, Saudi Arabia, and Mexico. Maruti's top five exporting models prominently feature the Fronx, Baleno, Swift, Dzire, and Jimny. The Fronx and Jimny, in particular, have been instrumental in driving incremental volumes in new markets like Japan. Circling back to small cars for overall industry growth While exports provide a crucial growth buffer, Maruti Suzuki is keenly observing the dynamics of the domestic Indian market. In May, MSIL's wholesale figures in the domestic market stood at 1,35,962 units, reflecting a general alignment with an industry that saw wholesale numbers flat at around 3,51,000 units. However, factoring out new model introductions from the previous year's base reveals an underlying 8 per cent degrowth in wholesale numbers, Partho Banerjee, Senior Executive Officer, Marketing and Sales, Maruti Suzuki India Limited, explained. Retail sales, as indicated by 'Vahan' data, also showed a degrowth of approximately 4 per cent for both MSIL and the industry in May, signalling a slowing market despite the presence of new models, he added. The Maruti Suzuki Dzire remained one of the best sellers in May 2025 Several factors contribute to this subdued domestic demand. However, the significant issue behind this as highlighted by MSIL is the rising cost of small cars, primarily due to increasing regulatory compliance expenses. It's noted that regulatory purposes account for around 60 per cent of the cost increase in small cars, making affordability a considerable challenge for customers looking to upgrade from two-wheelers to four-wheelers. Also Read : Maruti calls for small car revival to drive auto growth, banks on exports for near-term gains This impacts the entry-level segment where sales have been low, despite consistent inquiry levels, as financing becomes difficult for many prospective buyers. The share of this segment has been consistently declining, with some customers potentially opting for used cars. Other key reasons behind de-growth Adding to these economic pressures, specific regional challenges have emerged more specifically due to the recent India-Pakistan war. Maruti Suzuki has noted a discernible impact from military actions in the border areas of Jammu & Kashmir, Punjab, Rajasthan, and Gujarat. These states, where MSIL enjoys a substantial 55 per cent market share and collectively contribute close to 22 per cent of its total sales, have seen a direct hit. Also Read : Maruti Suzuki reports drop in domestic sales while exports continue to rise. Check details The situation has led to significant disruptions, with many bookings getting cancelled. Cities dependent on tourism in these regions have also experienced a decline in customer footfall, further compounding the sales slowdown. While urban market sentiments are not overtly positive, rural demand, which now constitutes almost 50 per cent of MSIL's sales, is anticipated to receive a boost from the forecasted good monsoon. The hybrid taxation debate Maruti Suzuki has also voiced concerns regarding the taxation of strong hybrid electric vehicles (sHEVs) in India. The company argues that it is unfair for strong hybrids to be taxed at the same rate as pure petrol and pure diesel vehicles. MSIL posits that hybrids represent a cleaner technology that can replace conventional petrol and diesel cars. However, there is a "viability gap" in hybrids, and taxing them equally with pure ICE vehicles means they 'cannot be taxed equal to pure petrol and diesel", Bharti emphasised. The company suggests hybrids "need a treatment" different from conventional vehicles, highlighting that the economic viability is a struggle due to GST and state taxes. MSIL believes that as long as pure petrol and diesel cars are sold, hybrids, being a cleaner alternative, deserve a more favorable tax structure. Prioritising safety: Addressing perceptions Furthermore, Maruti Suzuki is actively working to dispel the long-held perception that its vehicles lack safety. The company has introduced the 'Arena Safety Shield' campaign, emphasizing that it now offers six airbags as a standard feature across all variants of its entry-level vehicles, including models like the WagonR and also Electronic Stability Program (ESP) in the LCV segment. However, the company added that in the course of next two to three months, it also plans to add six airbags on a few other models like the Maruti Suzuki Baleno and the Ertiga. Also Read : Farewell Ciaz? Maruti Suzuki hints at a possible revival in a new form This comprehensive approach to safety, where 97 per cent of its models will soon have six airbags as standard, aims to educate customers that Maruti Suzuki vehicles are "much, much better" than perceived, challenging previous myths about Maruti cars. Get insights into Upcoming Cars In India, Electric Vehicles, Upcoming Bikes in India and cutting-edge technology transforming the automotive landscape. First Published Date: 03 Jun 2025, 06:47 AM IST
Mint
a day ago
- Automotive
- Mint
Fronx, Jimny drive Maruti's export boom to Japan amid home market slowdown
Maruti Suzuki India Ltd's exports nearly doubled in May, as its sales to its parent Suzuki Motor Corp's home market Japan surged amid a slowdown in the country's car market and global trade uncertainties. India's largest car seller is targeting 400,000 passenger vehicle exports in the current financial year as it seeks to offset a slowdown in the domestic market. In FY25, Maruti Suzuki exported 332,585 passenger vehicles. Maruti's overseas sales in May rose 80%, its fastest pace in five months, to 31,719 passenger vehicles while domestic sales fell 5% to 148,858 units. 'Incremental growth was led by sales of Fronx and Jimny in the Japanese market. Japan has quickly become our second-largest export destination. We are also seeing strong momentum in Africa, Latin America and Southeast Asia which have been our strong markets," Rahul Bharti, senior executive officer of corporate affairs at Maruti Suzuki, said on Monday during a media briefing. Global markets drive momentum Exports of electric vehicles, which are set to start later this year, will further boost international sales, he added. Maruti Suzuki had previously said that it will export a majority of the 70,000 EVs it will produce in FY26. The surge in sales across the world, which also includes Chile, Saudi Arabia, and Mexico, is allowing Maruti to increase its global footprint despite the threat of US president Donald Trump's threat to double tariffs on imported steel and aluminum to 50%. Maruti's surge in passenger vehicle exports comes at a time when carmakers of the country are increasingly tapping the international markets. In FY25, passenger vehicle exports from India grew by 15% to 770,364 units. Domestic market under pressure The uptick in exports helped Maruti offset some impact of slowdown in sales in the domestic market, which was affected by border tensions with Pakistan in May. States affected by border tensions with Pakistan accounted for more than a fifth of Maruti's sales and the cities most affected constituted about 9% of its sales. 'Despite the impact of border tensions on consumers in border states, our growth remained in line with industry," Partho Banerjee, head of sales and marketing at Maruti Suzuki, said. The management highlighted the rising cost of small cars due to increasing regulations, making them unaffordable for a vast majority of consumers again. Earlier on 25 April, Maruti chairman R.C. Bhargava had said that growth in the car market will not pick up unless cars become affordable again. 'In this current year, sales of small cars have declined by about 9%. If there is such a decline in the sales of cars that can be afforded by 88% of people earning, how can we expect growth?" Bhargava had said during the post-earnings briefing. Meanwhile, Banerjee struck an optimistic note during the briefing, saying that the expectation of a good monsoon will boost rural growth, likely creating demand for cars. 'We have also calibrated our dispatches to dealers to ensure inventory doesn't pile up. Our inventory level was at 35 days," Banerjee said. While Maruti Suzuki's domestic sales struggled, Mahindra's wholesale dispatches during May rose 21% year-on-year to 52,431 units. Tata Motors sold 42,040 cars in May, a decline of 11%. As per industry estimates for the current financial year, the car market is expected to grow by just 1-2%. In FY25, the country's car market grew by 2% to 4.3 million units. Maruti Suzuki's share price has surged by 9% so far in 2025, as against a 0.7% increase in Nifty Auto index.
Time of India
a day ago
- Automotive
- Time of India
Maruti eyes 4 lakh exports to offset domestic slump
1 2 3 Kolkata: Maruti Suzuki has set a target of 4 lakh exports in 2025-26, a 20% growth over the 3.3 lakh cars it exported in 2024-25. Exports this May were 80% higher than last May. Aggressive exports helped the company overcome sluggish domestic sales, to record 3% overall sales growth. Domestic sales were down 5.5% in May as mini and compact car sales continued to slide, impacted by both the rise in prices of entry-level vehicles as well as due to sales taking a hit in key northwestern markets amid the conflict between India and Pakistan. Rahul Bharti, Maruti Suzuki's senior executive officer (corporate affairs), said the aggressive exports strategy compensated for the slowdown in the domestic market where industry retail sales were down 4%, according to Vahan figures. In April and May, Maruti Suzuki exported 59,130 cars. South Africa was the largest market, accounting for 27% of exports, followed by Japan at 16% and Chile at 11%. Maruti Suzuki exports to 100 countries. Fronx, Jimny, Baleno, Swift, Ertiga are the top export models. Once the company starts manufacturing the eVitara, it will export the car to Europe and Japan. The company has raised its exports over the past few years. It exported 2.4 lakh cars in 2021-22, 2.6 lakh cars in 2022-23, 2.8 lakh in 2023-24 and 3.3 lakh in 2024-25. The 4 lakh export target was higher than the 3 lakh sales clocked by Toyota Kirloskar, the fifth-ranked automaker in India, in 2024-25. In the domestic market, the three most sold cars in May were all Maruti Suzuki products: Dzire, Ertiga and Brezza. Even though sales this May were 5.5% lower than in May 2024. Senior executive officer Partha Banerjee attributed the decline in sales to the rise in the cost of entry-level cars, due to regulatory compliance, that made them unaffordable for a large section of potential customers. The mini segment is down 31.6%, with sales crashing from 9,902 units in May 2024 to 6,776 in May 2025. The compact segment also took a hit with sales down 11%, from 68,206 in May 2024 to 61,502 in May 2025. "The India-Pakistan conflict in May impacted sales in the border states of Punjab, Rajasthan, Gujarat and the Union territory of Jammu and Kashmir that contribute 22% to the company's sales pie. Many customers who took finance have not taken deliveries. Sales of vehicles to tourist taxi operators have also taken a hit," Banerjee said.
Time of India
2 days ago
- Automotive
- Time of India
Maruti Suzuki eyes 20% export growth in FY26 amid domestic market headwinds
To offset uncertain domestic market conditions, Maruti Suzuki is aiming to ramp up its exports in FY26. The company is targeting a 20 per cent year-on-year growth, with 4 lakh unit shipments in the ongoing fiscal year, said its top officials. The country's largest carmaker reported an almost 50 per cent cumulative surge in its shipments in the first two months (April+May) of this financial year. In May alone, it registered a growth of 80 per cent in export numbers, with shipments of 31,219 units during the month compared to 17,367 units shipped in May 2024. The robust export shipments helped moderate the company's overall FY26 initial months' sales, which were affected by internal market instability. 'The military tensions and tourism disruptions in border states like Jammu & Kashmir, Punjab, Rajasthan, and Gujarat affected sales and bookings, especially in May,' said Partho Banerjee, Senior Executive Officer, Marketing & Sales during the May month's post earnings call. 'Exports have protected us against the fall in the domestic market. If you look at wholesales (April + May), we were down 2.6 per cent, but overall, including exports, we are up 5 per cent. So that's the power of exports,' Rahul Bharti, ED, Corporate Affairs, added. The automaker, which recently entered the Japanese market with the Jimny and Fronx, has received a positive and strong response, making Japan the second-largest destination for Maruti Suzuki shipments. Other top export markets for the automaker include Africa, Latin America, Southeast Asia, Japan, Chile, Saudi Arabia, and Mexico. The New Delhi-based automaker is also aiming to achieve approximately 50 per cent of the industry's export market share in the passenger vehicle segment, added Bharti. The company currently accounts for 43 per cent of the export market. Instability in the domestic market In May, the automaker reported a 4 per cent drop in Vahan retail sales. The company believes that despite the instability, it has managed to maintain its market share in line with the industry's performance. Jammu & Kashmir, Punjab, Rajasthan, and Gujarat account for 22 per cent of the company's sales. Border tensions significantly impacted the sales and about 9 per cent of our come directly from impacted regions, added Banerjee. However, the company is optimistic about better performance in the coming months, attributing this to favourable monsoon conditions, expected increases in rural sales, and pending customer deliveries linked to financing.
NDTV
2 days ago
- Automotive
- NDTV
Maruti Suzuki Targeting 4 Lakh Exports In FY2026, Amidst May Sales Slowdown
Despite the slowdown in domestic sales, Maruti continues to boast good numbers in export. In fact, the company said that Japan, one of its newer export markets, is already generating good export numbers for Fronx and Jimny and is currently at number 2 for overall exports. Currently, Maruti is present in over 100 countries across the globe and the top-selling export models include Baleno, Dzire and Swift, in addition to the Fronx and Jimny. Maruti is targeting a growth of 20 per cent in overall exports for the current financial year. Domestic Sales Slowdown Maruti Suzuki's May 2025 domestic sales saw a drop of 5.6 per cent year and while that number may not be a stark drop, but it reveals quite a few underlying details. In a sales call with journalists, the top management of Maruti Suzuki revealed that the primary reason of the drop in sales was due to the slow uptake in the small cars segment. The sales of the likes of Alto, S-Presso etc. showed a drop to 6,776 units, compared to 9,902 units last year. Compact cars (Baleno, Swift, Dzire, etc.) also declined slightly to 61,502 units, down from 68,206 units. Top 3 selling overall models in May 2025 were the Dzire, Ertiga and Brezza. But what was also revealed that international border tension impacted the sales of Maruti Suzuki models, particularly the small cars, in the states which border Pakistan such as - Punjab, Rajasthan, Jammu and Kashmir and so on. These states contribute to almost 9 per cent of total domestic sales. But the company is also confident that a strong monsoon will be beneficial for overall domestic sales in the coming months. With the launch of the e-Vitara on the anvil, Maruti Suzuki also hopes to reclaim its overall SUV leadership, baking on the predicted strong monsoon. Hybrid Theory Maruti Suzuki has one of the largest portfolio of hybrid cars in India and believes that in order for hybrids to sell, the government needs to do more in terms of offering concessions and subsidies on the purchase of new hybrid cars. The argument that MSIL makes is hybrid vehicles are less polluting than a pure petrol or diesel vehicle, hence a hybrid car and a pure ICE car cannot be treated the same. Moreover, the Commission for Air Quality Management is pushing for government vehicle fleet to use hybrid cars along with EVs. While this move plays strongly in favour of Maruti Suzuki, but OEMs like Mahindra and Tata have requested the Centre to focus on pure electric vehicles along with policies and incentives on the same and not on hybrids.
