Maruti Suzuki Sees PV Industry Growing by Around 10% in FY27

Maruti Suzuki expects the domestic passenger vehicle industry to grow by around 10% in the financial year 2027, a more optimistic outlook than earlier estimates, as demand improves, capacity constraints ease and product activity gathers pace.

While speaking to Autocar India, Partho Banerjee, senior executive officer for sales and marketing at Maruti Suzuki India, said the company's assessment of the market has become more positive over the past few months.

"Our take is that this year the industry will grow by at least 10%, give or take 1% here and there. Earlier, the forecast was around 4-6%. As of today, I don't see any reason why the industry should not grow by 10%," Banerjee said.

He said this financial year is likely to follow a familiar pattern, with strong growth in the first half supported by a favourable base, before moderating in the second half as comparisons become tougher.

"Last year was a year of two halves. This year will also be a year of two halves. The first half will obviously see very good growth due to the base effect. In the second half, you cannot expect that because the base is very high," he said.

The upbeat outlook comes at a time when Maruti Suzuki is preparing to add significant production capacity and expand its product portfolio. The company has also been gaining market share through a combination of new model launches and customers returning to the brand.

Banerjee said the company is seeing "win-back" customers across several models, contributing to recent gains in market share.

He also expects the recovery in entry-level cars to support overall industry growth. While SUVs continue to lead demand, Banerjee said India remains a low-car-penetration market, and affordable vehicles will continue to play an important role in expanding personal mobility.

"Everybody cannot leapfrog to a Rs 15 lakh car. We firmly believe that if motorisation has to happen, there has to be a play in that segment," he said.

Maruti Suzuki is also counting on demand for its expanding CNG portfolio, new product introductions and additional production capacity to support growth during the year.