Maruti Suzuki Eyes Over 10% Growth In FY27 As New Plants Add 5 Lakh Units Capacity

Maruti Suzuki India is targeting growth of more than 10% in FY27, supported by fresh production capacity, strong pending bookings and a revival in small-car demand following GST reforms, the company’s management said during its Q4 FY26 earnings call. 

Speaking during the quarterly financial results, Rahul Bharti, Chief Investor Relations Officer at Maruti Suzuki, said the company expected to benefit from new capacity coming on stream. “Effectively, one can expect that we’ll have an additional volume of about 250,000 cars available this year over the previous year,” Bharti said. 

“The broad expectation, which our Chairman also conveyed, is growth of over 10% this year as compared to the last year.” He clarified later that the growth expectation referred to Maruti Suzuki, and “not the domestic PV industry”.

The company plans to commission the second plant at its Kharkhoda facility in Haryana and the fourth production line at Hansalpur in Gujarat during the financial year. Each unit will add annual capacity of 250,000 vehicles, taking the total addition to 500,000 units. Bharti said increasing capacity by “about 0.5 million units in a single year” was “virtually unheard of” in the passenger vehicle industry in India and reflected the company’s confidence in demand.

Maruti Suzuki enters FY27 with a sizeable order book. The company said around 190,000 customer orders remained unserved at the end of FY26, of which nearly 130,000 were for small cars in the 18% GST bracket. Dealer inventory was also low at about 12 days’ stock.

Demand recovery has been helped by the GST reduction, which lowered acquisition costs for entry-level vehicles. Bharti said the passenger vehicle industry declined 0.4% year-on-year in the first half of FY26, but grew 16.7% in the second half. Maruti’s domestic sales, which fell 5.6% in the first half, rose 12.3% in the second half.

The company also expects its newer models to contribute. The Victoris has strengthened Maruti’s position in the mid-SUV segment, while the e Vitara, its first battery electric vehicle, has received an encouraging initial response. However, management said EV supplies are currently constrained by production capacity.

On margins, Maruti acknowledged pressure from commodities, energy and geopolitical uncertainties, but said demand remains supportive. CFO Arnab Roy said start-up costs from the new plants were not expected to be significant, provided the demand outlook stays positive.