Maruti Suzuki Set to Announce Fifth Plant Amid Sales Growth

The Chairman of Maruti Suzuki India, R. C. Bhargava, has confirmed that a decision on the company’s fifth manufacturing plant is imminent and expected within the next few months. This strategic expansion is underpinned by a significant revival in small car sales following recent GST rate adjustments, which have rejuvenated the entry-level segment. This trend challenges the perceived universal shift towards larger vehicles among Indian consumers and may lead to broader adjustments in manufacturer product mixes. Consequently, Maruti Suzuki is revising its long-term financial and production forecasts. The initial projections aimed to double turnover to approximately Rs 1.68 lakh crore and achieve 40 lakh annual unit production by 2030-31. The planned new plant in Gujarat represents a significant Rs 35,000 crore investment. Market data supports this optimism, with the retail sales share of key small car models increasing from 16.7% to 20.5% post-GST. The company anticipates a considerable increase in sales volumes for the second half of the fiscal year.