Maruti Suzuki India’s Chairman, R. C. Bhargava, revealed that a decision on the company’s fifth manufacturing facility is anticipated within the coming months. This significant development follows a notable resurgence in small car sales, attributed to recent Goods and Services Tax (GST) rate reductions. The revival challenges the notion that Indian consumers have exclusively moved towards larger, aspirational vehicles, suggesting a potential shift in product strategies across the automotive industry. Bhargava indicated that the company’s existing long-term financial targets are under review and will be revised to reflect the impact of the GST, with a formal announcement on the new plant expected shortly. This expansion, planned for Gujarat with an investment of approximately Rs 35,000 crore, signifies Maruti Suzuki’s commitment to bolstering its production capacity. Entry-level small cars like the Alto K10, S-presso, Wagon R, and Celerio have seen their retail sales contribution climb from 16.7% to 20.5% post-GST implementation, underscoring the renewed demand in this segment. The company anticipates a substantial uplift in sales volumes for the latter half of the fiscal year compared to the first.
