Maruti Suzuki's production teams worked three consecutive Sundays in October and continued Sunday operations into November, an unusual measure highlighting the unprecedented demand surge following the government's GST reduction on small cars.
"Our production teams have worked on three consecutive Sundays. And this coming Sunday too our production team is working to produce more Swifts and Balenos for us," Executive Director Partho Banerjee revealed at the company's financial results press conference. "That speaks volumes, if our production teams are working on Sundays to produce the cars and to serve our customers."
Despite these extraordinary efforts, several models in the 18% GST category continue to face waiting periods of 2-3 weeks depending on color and variant, underscoring the intensity of current demand. The company holds approximately 200,000 pending bookings in this category alone.
The Swift and Dzire models are "rocking," according to Banerjee, experiencing some of the strongest demand in the aftermath of the August 15 GST announcement. The Baleno is similarly witnessing robust bookings, compelling the production ramp-up.
"Please understand that there is a demand in the market. The supplies are not yet in line with the market demand," Banerjee acknowledged, noting that even with Sunday production, the company is struggling to match retail demand with supply.
The production push isn't limited to hatchbacks and sedans. The FRONX compact SUV is also performing exceptionally well, with Banerjee indicating it would achieve "all-time great numbers," demonstrating that demand has strengthened across Maruti's portfolio within the 18% GST bracket.
Chairman R C Bhargava highlighted that the company has significantly improved its manufacturing flexibility to respond to such demand fluctuations. "Earlier on, we were not flexible in our production lines. We now have far greater flexibility than ever before, and we will now be able to produce the vehicles which customers demand," he stated.
This flexibility has become crucial as the product mix shifts dramatically. Maruti produces approximately 70% of its vehicles in the 18% GST category, and retail sales in this segment are now growing faster than vehicles in the 40% GST category. The company anticipates this trend will continue, potentially altering long-term production planning.
The capacity expansion underway should provide additional breathing room. At the Kharkhoda facility in Haryana, the first production line is fully operational, and the second line will be commissioned in the first few months of the next financial year. Decisions regarding a fifth manufacturing plant are close to finalization, with announcements expected in the coming months.
However, the immediate challenge remains meeting current demand. Banerjee made a direct appeal through the media: "Through your publication, I would like to request all readers to book their vehicles early to ensure timely delivery."
The waiting period varies significantly by model. Bhargava noted that while some vehicles in high demand face 2-3 week waits, others can be purchased off the shelf immediately. "It depends also to an extent on which car you book. Some cars will not have any booking time at all. You can buy it off the shelf. Some cars will have," he explained.
The production sprint has been necessitated by the dramatic market shift following the GST revision. After the Prime Minister's August 15 announcement, many customers postponed purchases in anticipation of lower prices, depressing sales for over a month. Once the GST reduction was implemented, pent-up demand combined with festive season buying and genuine new demand created an exceptional surge.
October witnessed Maruti's highest monthly retail sales according to VAAHAN data, with approximately 230,000 units sold. The company's retail market share grew by an additional 2% that month, reflecting its strong position in the small car segment.
The production intensity also reflects Maruti's strategic commitment to the mass-market segment. Bhargava emphasized that serving customers who might otherwise ride two-wheelers—"the riskiest vehicle possible" with "maximum road deaths"—aligns with the company's founding mission.
Looking ahead, the company expects the second half of the fiscal year to be "significantly different" from the first half in terms of sales volumes, with the chairman projecting approximately 6% growth in the second half compared to 1.44% degrowth in the first half.
The weekend production shifts represent more than operational adjustments; they signal a potential inflection point in India's automotive market, where affordability-driven demand for compact vehicles has reasserted itself as a dominant force, requiring manufacturers to rapidly recalibrate both production and strategy.