Maruti Suzuki sees output constraints ease as it starts new line in Apr
This story was originally published at 18:41 IST on 1 March 2026
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--Maruti Suzuki: Expect new production line to be commissioned in Apr
--CONTEXT: Maruti Suzuki management's comments in virtual press conference
--Maruti Suzuki: Network stock of 12 days, trying to serve demand
--Maruti Suzuki: Focused more on despatches of utility vehicles in Feb
--Maruti Suzuki: Monitoring situation arising from geopolitical conflict
--Maruti Suzuki: Don't have very high exposure to West Asian markets
--Maruti Suzuki: Broad-basing export markets has helped co derisk exposure
--Maruti Suzuki: Co has gained Vahan market share after GST cut on Sept. 22
--Maruti Suzuki: WagonR has a waiting period of more than 1 month
By Sunil Raghu and Anand JC
AHMEDABAD/NEW DELHI – All of Maruti Suzuki India Ltd.'s production facilities are operating beyond full capacity and the situation is likely to ease only when its new production line is commissioned by April, Partho Bannerjee, senior executive officer, marketing and sales, told reporters in an online press conference Sunday.
Bannerjee claimed that the company's production capacity was operating at more than 100%. For February, Maruti produced nearly 214,000 vehicles, which translates to over 2.6 million per annum, against its existing production capacity of nearly 2.4 million vehicles per annum. "Our new line is expected to get commissioned by April," he said. "So from May onwards you would see scale-up of our numbers."
The new line is going to be operational at the company's current plant at Kharkhoda in Sonepat district of Haryana. It will be able to make multiple models, depending on market need, and will add an annual capacity of up to 120,000 cars.
Besides the capacity constraint, Maruti Suzuki's network stock, too, stands at a "very low" level of 12 days, of which seven days go in transit. Bookings for WagonR, the small car from the company's stable, has a waiting period of 12 days. The management said its Vahan market share, too, has risen after the cut in goods and services tax rates effective Sept. 22.
To handle the situation, Maruti Suzuki has focused on despatches of utility vehicles, recording growth of 12% on year for the month of February. It has also increased its share in the mid-size sport utility vehicle segment to 19%, from 12.8% earlier, selling 72,756 units in February alone. Bannerjee said the company also increased its penetration in the market for vehicles powered by compressed natural gas and sold 675,000 CNG vehicles in Apr-Feb, up 18.2% on year.
On exports, Rahul Bharti, senior executive officer, corporate affairs, said the company has already achieved its target of exporting 400,000 vehicles in the financial year 2025-26 (Apr-Mar). He said the company achieved this target a month in advance. In the 11 months ending February, the company exported 400,734 vehicles.
Asked about the war in West Asia between Israel and the US on one side and Iran on the other, the management said it is monitoring the situation. It added that Maruti Suzuki does not have "very high" exposure to the West Asian market and broad-basing its export markets has helped to de-risk exposure. End
Edited by Rajeev Pai
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