“We are sticking to our guidance of 10% growth in small cars in H2. About 70% of our total sales fall under the 18% GST slab, and this segment will continue to expand steadily over the next six months,” Bhargava told ET Now.
Small car revival to boost overall industry and Maruti’s market shar
Bhargava said the uptick in demand for small cars will also benefit the broader auto ecosystem by enabling customers to upgrade to higher-segment vehicles in the future.
“If small cars continue to grow, it will fuel future demand for bigger cars as more people enter the ownership base. The small car segment is the foundation for long-term growth,” he said.
Maruti Suzuki currently dominates the compact and entry-level car market and is expected to gain market share as other OEMs focus primarily on SUVs. “There’s only one other major player in small cars. So, this segment’s growth will naturally benefit Maruti and them, leading to some market share loss for others,” Bhargava added.
Margins to stabilize as discounts ease, demand strong
Despite a slight year-on-year dip, Maruti Suzuki’s operating margins came in at 10.5% this quarter. Bhargava expects margins to remain stable in the second half, supported by easing promotional expenses and steady demand.“Advertising costs won’t grow at the same pace. Many models now have waiting periods, reducing the need for discounts. This wasn’t the case even a month ago,” he explained.Analysts note that Maruti’s pricing discipline and robust order book could support profitability in upcoming quarters.
Exports emerging as a strong growth lever
Maruti’s export story continues to strengthen, with growing international demand for models like the Baleno, Fronx, and Jimny.
“The Baleno is selling very well. Japan is taking a lot of Fronx and Jimny units — both are among our best sellers overseas,” Bhargava said.
The company has also begun exporting the e-Vitara, with around 7,000 units shipped so far, though Bhargava said it’s still in the early stages and not among the company’s top export performers yet.
Maruti’s 50% market share target by 2030-31
Bhargava reaffirmed Maruti Suzuki’s ambitious goal of reclaiming a 50% market share in the Indian passenger vehicle market by FY31, potentially earlier.
“2030–31 is the target, but it may happen sooner if small car demand remains strong,” he said.
Industry experts note that with Maruti’s renewed focus on affordable mobility, EV expansion, and strong rural demand, the company is well-positioned to maintain its leadership.
Key Takeaways
- Maruti expects 10% small car growth in H2 FY25.
- 70% of Maruti’s sales are in the 18% GST slab segment.
- Margins to stabilize as discounts reduce amid high demand.
- Exports of Baleno, Fronx, and Jimny gaining strong traction.
- Maruti aims for 50% market share by FY31, driven by small car growth and product expansion.