Maruti Suzuki Chairman R. C. Bhargava revealed that the company is on the verge of deciding on its fifth manufacturing plant, with an announcement anticipated within months. This strategic move comes as recent Goods and Services Tax (GST) rate reductions have significantly revitalized sales in the small car segment, countering the notion that Indian buyers are exclusively opting for larger vehicles. Bhargava indicated that the positive impact of GST would likely prompt other manufacturers to reassess their product strategies.
Discussing the company’s future, Bhargava stated that long-term financial projections, which previously targeted doubling turnover to approximately Rs 1.68 lakh crore by 2030-31 and achieving an annual production of 4 million units, will be revised. The company is currently finalizing these updated forecasts. He also clarified that the second quarter financial results do not yet fully capture the effects of the GST reduction, and a substantial upturn in sales volumes is expected in the latter half of the fiscal year.
The expansion plan includes a significant Rs 35,000 crore investment in a new plant in Gujarat. This facility will be Maruti Suzuki’s fifth manufacturing base. The positive sales trend is already evident, with the entry-level small car segment, including models like the Alto K10, S-presso, Wagon R, and Celerio, seeing its retail sales contribution rise to 20.5% post-GST, up from 16.7% previously. This resurgence highlights the enduring appeal of affordable mobility in the Indian market.