Maruti Suzuki to manufacture 4 million cars per year by 2030 says Chairman RC Bhargava

Bhargava told CNBC-TV18 that the aim is to incentivise  employees and convince them that their lives would be better if the company became more competitive and cost-efficient.

By  Storyboard18Mar 1, 2024 1:14 PM
Maruti Suzuki to manufacture 4 million cars per year by 2030 says Chairman RC Bhargava
Maruti Suzuki has been losing its market share in the small cars segment, which for decades it dominated. (Representative Image: Adrian Balasoiu via Unsplash)

Maruti Suzuki, India's largest vehicle manufacturer is in full swing to double its size.

Chairman RC Bhargava said he's preparing the company to produce 4 million cars a year by 2030. Currently, the company produces around 2.25 million vehicles across its plants in Gujarat and Haryana.

Bhargava told CNBC-TV18 that the aim is to incentivise  employees and convince them that their lives would be better if the company became more competitive and cost-efficient.

Maruti Suzuki is the leader in the Indian market, and sells nearly thrice as many cars as its closest competition Hyundai. However, the Indian vehicle market is a very competitive space and is going through rapid transformation.

Hyundai on average, makes around Rs. 8.29 lakh per car sold. Maruti Suzuki on the other hand makes lesser at Rs. 5.8 lakh. The EBITDA per vehicle for Hyundai India was ₹1.15 lakh, compared to Maruti’s nearly ₹56,000 in FY23.

Maruti Suzuki has been losing its market share in the small cars segment, which for decades it dominated.

Furthermore, compared to other manufacturers, Maruti Suzuki has been slow to adopt the electric vehicle transition. Bhargava is not convinced that EVs would be the primary choice for Indian car buyers.

"I don't think EVs in India can ever become the main choice for car buyers," he said

In 2023, a little more that six vehicles in every 100 sold were EVs, according to reports.

First Published on Mar 1, 2024 1:14 PM

More from Storyboard18

Quantum Brief

APAC consumers eager for tech transformation, cautious of speed and privacy risks: Ipsos Report

APAC consumers eager for tech transformation, cautious of speed and privacy risks: Ipsos Report

Quantum Brief

Maestro Ustad Amzad Ali’s son compose patriotic music for Independence Day

Maestro Ustad Amzad Ali’s son compose patriotic music for Independence Day

Quantum Brief

Pune eatery wins legal battle against US based Burger King

Pune eatery wins legal battle against US based Burger King

Quantum Brief

World Federation of Advertisers suspends brand safety unit after Elon Musk’s lawsuit

World Federation of Advertisers suspends brand safety unit after Elon Musk’s lawsuit

Brand Makers

GOAT Brand Labs raises $21 million to drive omnichannel expansion

GOAT Brand Labs raises $21 million to drive omnichannel expansion

Quantum Brief

EXCLUSIVE: Ampverse Shuts 7Sea Esports; Founder says 'can't see growth trajectory in India'

EXCLUSIVE: Ampverse Shuts 7Sea Esports; Founder says 'can't see growth trajectory in India'

How it Works

Look beyond vanity metric to make most of print ads: Rajiv Gopinath of Publicis Media Services

Look beyond vanity metric to make most of print ads: Rajiv Gopinath of Publicis Media Services

Quantum Brief

Epic Games CEO to fight against Apple’s app store policies

Epic Games CEO to fight against Apple’s app store policies