Maruti Suzuki, India's leading car manufacturer, anticipates that ongoing production constraints will persist for several more months. This announcement follows the company's report of steady domestic sales and increased exports for January. The company is struggling to keep up with rising local demand, resulting in extended waiting periods for popular models like the Wagon R.
Partho Banerjee, Senior Executive Director of Marketing and Sales at Maruti Suzuki, addressed the production issues, stating that the production team is actively working to increase capacity and shorten delivery times for customers. Maruti Suzuki currently has approximately 175,000 pending orders. To address the high demand, the company is utilizing some production lines to assemble cars across various segments and is operating plants on Sundays and public holidays to boost output.
In January, Maruti Suzuki's domestic sales saw a slight increase of 0.5% to 174,529 units. While sales of small cars experienced a decline of 9.8%, utility vehicle sales rose by 16% compared to the previous year. Exports, however, surged by 88% due to strong demand from Japan, South Africa, and Saudi Arabia. Maruti Suzuki reported total sales of 236,963 units in January, with exports reaching a record 51,020 units. Bookings in January alone amounted to 278,000, highlighting the robust demand for the company's vehicles.
The company is also considering a potential price hike due to rising commodity costs. Banerjee noted the phenomenal increase in precious metal prices and the company's close monitoring of the geopolitical scenario. While Maruti Suzuki aims to minimize cost increases for customers, they may need to pass on some of the burden if they cannot absorb the rising commodity prices. To protect customers from price increases during the production delays, Maruti Suzuki has initiated a price protection scheme in January for those who have already booked their vehicles.
Looking ahead, Banerjee expressed optimism about the passenger vehicle market, suggesting it could return to a 6-7% compound annual growth rate. He cautioned that rising commodity prices and geopolitical developments could pose challenges. Banerjee also believes that the Union Budget 2026-27, with its focus on infrastructure-led capital expenditure and GST reforms, will further stimulate the auto sector. The company's newly launched SUV VICTORIS has already crossed 50,000 units in sales within five months. Maruti Suzuki is evaluating potential models for export to Europe under India's trade agreement with the European Union.
