Maruti Suzuki Says Demand Remains Strong in Q4; Supply Constraints Persist

Maruti Suzuki India said the current passenger vehicle demand environment remains strong and broad-based, with the carmaker constrained by supply rather than demand, as reflected in a large order backlog and historically low dealer inventories.

Speaking to analysts after the company’s Q3 FY26 earnings call, Rahul Bharti, Executive Officer, Corporate Affairs at Maruti Suzuki India, said “In the immediate short term, we are constrained by supply and are struggling to meet demand as much as possible.”

Maruti Suzuki ended the December quarter with a healthy order book of around 175,000 vehicles, while network inventory stood at just three to four days. Bharti said the company’s SUV market share continues to grow, further strengthening positive demand indicators.

While near-term demand visibility remains strong, Bharti cautioned that the sharp rebound seen in the December quarter may partly reflect a mix of postponed demand from earlier in the year and purchases delayed by the GST reform. “Quarter three would have involved some element of postponed demand and some preponed demand. Quarter four looks good, but we need to look beyond,” he said.

Maruti Suzuki had earlier indicated that around 7% volume growth could represent a sustainable medium-term demand level. He said the company will reassess demand conditions over the next few months as the post-GST momentum stabilises.

The demand commentary comes as Maruti Suzuki accelerates capacity expansion to ease supply constraints and ensure production limitations do not cap growth if demand momentum sustains.