Suzuki Motor Corp, the parent company of Maruti Suzuki, has revealed in its ‘Mid-term Management Plan’, that it is rethinking its India strategy, amid declining market share. The press release shows that along with a 15 percent downward revision of its long-term sales outlook, the Japanese company will launch four new EVs in India by FY2031, down from the six originally planned.

1. Maruti e Vitara to be followed by three more EVs by FY2031
2. India sales projected to reach 25.4 lakh units by FY31, down from 30 lakh
3. Reflects a 15 percent cut in EV sales targets

Maruti EV launch plans revised

Maruti low cost EV to rival Tiago EV and YMC MPV likely to follow e Vitara

The plan stated in 2023 had six new Maruti EVs in the pipeline, but, as per the new plan, there will only be four. A similar revision has also been made to Suzuki's European EV plans. The company, which previously aimed for five EVs in Europe, now intends to offer four models.

Of the four EVs now planned, the Maruti e Vitara will be the first, with prices set to be announced this March. The brand has yet to confirm what the other three models are but the low-cost Tata Tiago EV rival could be one, and the e-MPV, codenamed YMC, could be another.

Maruti India EV sales target slashed by 15 percent

With the falling share of the entry car segment, slowing EV sales and retarding growth rate, Suzuki has also reduced the long-term sales outlook for its Indian subsidiary by 15 percent. The brand is now looking at volumes of 25.4 lakh units by FY31 as against the 30 lakh units target announced in 2023.

The company is targeting a slower compounded annual growth rate (CAGR) of 5 percent in the next six years as against the previous expected CAGR of 8 percent. Despite this, India will increase its share of Suzuki’s global sales during this period, accounting for 60 percent of its total global sales, up from 56 percent in FY24, and will remain its fastest-growing market.

Meanwhile, Suzuki projects its total global volumes to grow to 42 lakh units by FY31 from 31.6 lakh units in FY24. This is a CAGR of 4 percent over the next seven years.

That the overall projected annual volume is down 15 percent while maintaining the projected contribution of EVs to total sales at 15 percent implies a cut of 15 percent in its EV sales target as well. This translates to estimated sales of 3,81,000 electric cars in FY31, down from the earlier projection of 4,50,000.