The automotive giant Maruti Suzuki is on the cusp of deciding on its fifth manufacturing plant, according to Chairman R. C. Bhargava. He confirmed that an official announcement regarding this crucial expansion is expected in the next few months. This strategic move comes as the company witnesses a significant uptick in demand for small cars, a trend bolstered by recent GST rate cuts. This revival challenges previous market perceptions and could prompt other manufacturers to re-evaluate their product portfolios. The GST impact is also leading Maruti Suzuki to revise its long-term financial and production forecasts, which had initially aimed for a turnover of around Rs 1.68 lakh crore and an annual production of 40 lakh units by 2030-31. Furthermore, the company’s Senior Executive Officer for Marketing and Sales highlighted that the share of entry-level small cars in retail sales has increased to 20.5% following the GST reduction, up from 16.7%. This renewed interest in affordable vehicles is a key driver for the planned Rs 35,000 crore investment in the new Gujarat facility, and the company expects a much stronger second half of the fiscal year in terms of sales volumes.
