By FY2030, Maruti Suzuki has plans to introduce 4 BEV models, which will contribute around 15% to the company’s overall sales
Suzuki has announced its new mid-term management plan for FY2025 – FY2030, which highlights the strategy for various global markets including India. Sales volume target (FY2030) is set at 4.2 million units, whereas operating profit target is 700 billion yen (Rs 40,644 crore). India will continue to be the biggest contributor to the company’s global sales and growth.
Maruti’s 5-year business strategy for India
Due to rising competition, Maruti’s market share has remained below 50% for some time. Maruti now intends to reclaim that position by FY2030. The company seems confident even when competition in the EV segment is set to intensify in the coming years. Earlier, Maruti had plans to introduce 6 new BEV models in India by the end of this decade. But the mid-term plan reveals that only 4 new BEV models will be introduced in India by FY2030.
Maruti’s first EV offering in India will be the eVitara. The other three models could include an entry-level EV that takes on rivals like Tata Tiago EV. An electric MPV, codenamed YMC, is also under development. Maruti’s product plan reveals that ICE models (petrol + ethanol-blended + CNG) will contribute around 60% of the overall sales by FY2030. Contribution of BEVs will be 15%, whereas HEVs will generate around 25% of sales.
Suzuki is aiming for much higher electrification in other markets, for example, 45% BEV sales in Europe. HEVs are targeted to contribute 55% in Europe. For its home market Japan, Suzuki is aiming for 20% BEV and 80% HEV sales. Four BEV models are planned for Europe and six for Japan. Despite increasing competition, Maruti Suzuki aims to become the Number 1 in production, exports and sales of BEVs. It implies that India will emerge as a major production and export hub for BEVs.
Sales / profit targets
For FY2030, the sales volume target is set at 4.2 million units. India will continue to be the biggest market, with a targeted contribution of 2.54 million units. That’s more than 60% of the brand’s global sales. To meet rising demand across domestic and export markets, Maruti will be expanding supply chain and production capacity (new Kharkhoda Plant and new Gujarat Plant). As and when the need arises, production capacity in India will be gradually increased to 4 million units per year.
Mega investments planned
To achieve its goals for FY2025 to FY2030, Suzuki has announced a capital investment of 2,000 billion yen (Rs 1.16 lakh crore). Out of this, 1,200 billion yen (Rs 69,676 crore) is exclusively for the Indian market. The funds will be used for various purposes such as development of new models and expansion of production capacity.
Funds will also be utilized for carbon neutrality goals, quality measures, efficiency measures, sales points, test equipment, etc. Suzuki has also allocated 2,000 billion yen for R&D purposes. R&D initiatives will focus on tasks like technology development towards energy minimization, future technology development, new business opportunities and infrastructure investment.
Source: Electric - rushlane.com
