Maruti aims 10 per cent growth every year till 2023

- 17.7 lakh vehicles sold (domestic + export) in FY 2017-18

- 1.65 lakh vehicles sold in domestic market in April 2018 at 55 per cent market share

2017-18 has been the year of Maruti Suzuki with the carmaker recording more sales every month no matter what the market scenarios have been. With a record of nearly 18 lakh vehicles exiting the factory gates in the last twelve months, this has been the best ever year for Maruti Suzuki, bringing it very close to its previous target of 20 lakh cars per year by 2020.

Not the one to settle down, Maruti Suzuki seems to have aimed higher at the vendor conference in Dubai last week. It is said that Maruti Suzuki is aiming at the 25 lakh mark for annual sales in the next five years which boils down to a CAGR of 10 per cent. Maruti Suzuki has been registering double digit growth for the past two years. With strategic investments of over Rs 20,000 crores earmarked for investments to improve the technology, manufacturing facilities and developing new products, it seems well equipped.

Maruti aims to hold on to its 50 per cent market share to achieve the target but that might be difficult. Three new carmakers are coming to India – Kia, MG Motors and Peugeot and all three of them will want to play the budget-premium game. These are segments that have the highest growth potential, like the premium hatchbacks, crossover compact SUVs and premium compact SUVs. With the competition stiff in these segments, Maruti Suzuki will have to repeat what they did with the Dzire and Swift to demolish the competition.

Maruti Suzuki’s dream might actually come true if Dr. Pawan Goenka’s (MD, Mahindra and head of automotive operations) prediction of India being a 8 million per annum market by 2025 stands the trial of time.