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Informist, Tuesday, Apr. 28, 2026

 

--Maruti Suzuki: Expect India PV sales to grow 10% in FY27
--CONTEXT: Maruti Suzuki mgmt's comments in post-earnings call with analysts
--Maruti Suzuki: Share of first-time buyers up since GST cut

--Maruti Suzuki:See headroom for growth in average selling price of our cars
 

By Anand JC and Eshitva Prakash

 

MUMBAI – Maruti Suzuki India Ltd. is expecting a 10% year-on-year growth in its domestic passenger vehicle sales in the financial year 2026-27 (Apr-Mar) as it expects momentum from the cut in goods and services tax in September to continue, the management told analysts in a post-earnings conference call Tuesday. Additionally, the company expects to have a surplus of 250,000 cars available for sale this year, manufactured at its two new production lines in Haryana and Gujarat. 

 

The company saw its existing production facilities operate at maximum capacity in the second half of FY26 as car demand shot up after the GST cut. "This time, we will be thinking of utilising new (manufacturing) plants," Rahul Bharti, senior executive director of corporate affairs at Maruti Suzuki, said. "Obviously, the two new plants that come up with a steady-state capacity of 500,000 units total, they will need a ramp-up (phase)," he said. 

 

Maruti Suzuki commissioned its second plant at Kharkhoda in Haryana in April. The company expects the fourth production line at the Hansalpur facility in Gujarat to be operational in July. "Each of these new units will add an annual production capacity of 250,000 vehicles. To put this in perspective, increasing production capacity by about half-a-million units in a single year is virtually unheard of in the passenger vehicle industry, at least in India and many countries abroad," Bharti said.

 

Maruti Suzuki does not expect to incur high costs as the second phase of the Kharkhoda plant is ramped up. "There will be some ramp-up definitely for the Kharkhoda Phase 2 plant, but we do not expect anything significant because the demand outlook looks good," a company official said. "And economies of scale should be able to broadly take care of that startup cost. So we don't expect anything significant." 

 

For the March quarter, Maruti Suzuki has reported a net profit of INR 35.91 billion, down almost 7% on year and below analysts' expectation of INR 40.65 billion. Its revenue grew 28% on year to INR 524.49 billion, above the consensus view of INR 514.52 billion.

 

The company blamed the year-on-year fall in net profit on "mark-to-market impact" of around INR 7.5 billion on its invested surplus. These losses are only on a short-term basis because of changes in interest rates due to the volatile macroeconomic environment. "I think our credit quality remains very robust, and I think we are at more than 99.5?A-rated security, so that remains quite robust," an official said. "So, in the long term, it is completely secure."

 

As demand for cars went up in the second half of FY26, Maruti Suzuki saw the contribution of first-time buyers to its customer pool rising to 51% in the March quarter from around 42% in the year-ago quarter. "It is a very clear signal that the government's intended support to first-time buyers is showing results," Bharti said.

 

On a quarter-on-quarter basis, the average selling price of Maruti Suzuki's cars went up, the company said, without disclosing the exact figure. "We do believe that there is still headroom for ASP (average selling price) because the upper segment models, there is some headroom," Bharti said, adding that higher sales of its electric sport utility vehicle e Vitara will boost this metric.

 

Tuesday, the company's shares closed 2.5% lower at INR 12,892 on the National Stock Exchange.  End

 

Edited by Rajeev Pai

 

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