Suzuki Cuts India Sales Target Amid Competition, Reduces EV Launches

Japanese automaker Suzuki Motor has revised its sales target in India, its most crucial market, and scaled back its planned electric vehicle (EV) launches. Suzuki hoped to sell 4.2 million cars by FY2030, increasing total sales volume by 33%. Suzuki's India sales forecast is now 2.5 million cars for March 2031, down from a set target of 3 million assigned in October 2023. Suzuki will only launch four EVs instead of six.

This is in consonance with the increase of Maruti Suzuki, the Indian subsidiary of Suzuki Motor Company, from a barrage of feature-laden vehicles and SUVs from Tata Motors and Mahindra & Mahindra. The decrease in EV sales across the globe and more importantly, the entry of Tesla into India with confirmation of the launch of their showroom in India have swayed Suzuki's strategic overhaul.

The market share of Maruti Suzuki in India has fallen from a high of 51% during March 2020 to 41% now. It had given itself the target of reclaiming 50% market share by March 2026 but has now extended that to 2031. It reflects the hopes of the company to ride on the ever-increasing expectations among the customers in terms of product quality, features, and services in a competitive environment.

India is Suzuki's biggest market, one to which they have directed more efforts, President Toshihiro Suzuki said during a strategy briefing session on Thursday in Tokyo.

It was pointed out that sales of BEVs are not so good these days in Europe, that new technologies could not take off without customer acceptance, while Suzuki is also working on a mix of technologies that include hybrids and bio-gas.

The change in customer preference from entry-level cars, closest to Suzuki, to mid-sized SUVs further tightened the screws on the automaker. To turn it around, Suzuki will be powering up its SUV range in India and ramping up its capabilities, whereas it has now given itself the time 'at the right time'- earlier keeping a target for March 2031.