India's Maruti sees passenger vehicle market rising to up to 6.3 mn units by 2031

India's largest carmaker, Maruti Suzuki India (MRTI.NS), opens new tab expects the domestic passenger vehicle market to grow to 6.1 million-6.3 ​million units by fiscal year 2030-31, driven by a ‌revival in demand for small cars and a stronger sport utility vehicle segment, Chairman R.C. Bhargava said.

Maruti is reassessing its five-year growth targets as ​it expects the small-car segment to expand significantly faster ​than in the past five years, the company said ⁠in a statement on Sunday, accompanying its 2025/26 annual report.

Maruti sold a record 2.42 million vehicles and exported an ​all-time high 447,000 units in FY26, and expects to reach its next million-unit sales milestone earlier than previously projected.

The company plans to invest about 350 ​billion rupees ($4 billion) to raise annual production capacity to 3.65 ​million vehicles by FY31.

Maruti's board has approved an initial investment of 5.61 ‌billion ⁠rupees to set up four biogas plants as part of its clean-energy strategy. Bhargava said biogas could reduce dependence on imported compressed natural gas and support India's net-zero goals.

Managing Director and CEO ​Hisashi Takeuchi said ​Maruti plans ⁠to launch seven new SUVs over the next five to six years to strengthen its presence ​in the fast-growing segment.

The company accelerated capacity expansion ​by ⁠adding 500,000 units of manufacturing capacity in FY27.

Maruti is prioritising localisation, alternate sourcing and supplier capability development to mitigate geopolitical and supply-chain ⁠risks.

Maruti ​said its relationship with parent Suzuki Motor ​Corp (7269.T), opens new tab has become "closer and more integrated", helping shorten vehicle development cycles and reduce ​costs.

-Reuters