Suzuki Projects Fivefold Growth in India's Automobile Market by 2047
Suzuki Motor Corp. anticipates a dramatic expansion in India’s automobile market, predicting it will grow fivefold to reach 20 million units by 2047. This optimistic forecast is buoyed by the promising rise in battery electric vehicles (EVs), as stated by Kenichi Ayukawa, Suzuki's Executive Vice President.
Ayukawa outlined Suzuki’s ambitious plans for its Indian subsidiary, Maruti Suzuki India Ltd., aiming to capture 50% of the market share by 2030, up from the current 40% in the fiscal year ending March. "We’re confident that the Indian market will expand in the mid to long term", Ayukawa said.
India's burgeoning middle class and its emergence as an economic powerhouse provide fertile ground for Suzuki’s growth. The company, active in India since 1983, has achieved significant success with popular models such as the Swift and Brezza. To maintain its market leadership, Suzuki plans to introduce its first-ever EV in India and Europe next year, showcasing its mass production model at the upcoming auto expo in India this January.
"We’ll develop products, invest, and expand our network", Ayukawa affirmed, emphasizing Suzuki’s commitment to innovation and market expansion.
In the fiscal year ending March, India saw the sale of 4.2 million passenger vehicles, according to the Society of Indian Automobile Manufacturers. To contextualize Ayukawa’s projection, 3.1 million passenger cars were sold in the US last year, while Europe recorded 15 million unit sales. China remains the largest automobile market globally, with 26 million passenger vehicle sales, as per the International Organization of Motor Vehicle Manufacturers.
While Suzuki’s upcoming eVX will be a premium electric vehicle, the company plans to introduce more affordable and compact models featuring lighter batteries. Ayukawa projected that EVs would constitute 15% of Suzuki’s sales in India by 2030, highlighting the environmental issues driving the demand for EVs in the country. Despite the increasing willingness to spend more on cars, Ayukawa noted that "India remains a price-conscious market".
The Indian market is also showing a growing preference for crossovers and sport-utility vehicles (SUVs), sectors where competition is fierce, especially with strong contenders like Tata Motors Ltd. and Mahindra. Tata, India’s third-largest carmaker, leads the fully-electric segment with its Tiago and Nexon models and aims to make its EV business profitable by early 2026.
Suzuki will focus on models for everyday use, necessitating the development of new battery types. Ayukawa mentioned the possibility of Suzuki undertaking domestic production of battery cells within the next 5 to 10 years.
Regarding its strategic partnership with Toyota Motor Corp., Suzuki will concentrate on smaller cars, while Toyota will handle larger models. This collaboration, initiated in 2019 with Toyota acquiring a 5% stake in Suzuki, also leverages Toyota’s EV technology to enhance Suzuki’s product development. "We will learn basic know-how from Toyota and gradually make it our own", Ayukawa said.
Suzuki also sees potential in compressed natural gas (CNG)-powered cars, which are more economical than gasoline in India. Maruti Suzuki sold 483,000 CNG cars in the latest fiscal year, marking a 47% increase from the previous year.
Suzuki plans to operationalize four plants converting methane from cow manure into CNG, facing challenges such as large-scale monetization of the residual organic fertilizer, Ayukawa noted. This innovative approach underscores Suzuki’s commitment to sustainable growth and environmental responsibility in the rapidly expanding Indian market.
