Maruti Suzuki sees India’s passenger vehicle market reaching 6.3 million units by 2031

Sunday 09 August 2026 - 12:00

By: Sahili Aya

Maruti Suzuki sees India’s passenger vehicle market reaching 6.3 million units by 2031

India’s passenger vehicle market could expand to between 6.1 million and 6.3 million units by fiscal 2030-31, Maruti Suzuki India Chairman R.C. Bhargava said, pointing to renewed growth prospects for the country’s automotive industry.

The forecast from India’s largest carmaker reflects expectations of stronger demand for small cars alongside continued momentum in the sport utility vehicle segment.

Maruti reassesses its long-term growth strategy

Maruti Suzuki is reviewing its five-year growth targets as it anticipates a stronger expansion in the small-car market than it experienced during the previous five years.

The company outlined the outlook in a statement accompanying its 2025/26 annual report, signalling a more optimistic assessment of future domestic demand.

The expected recovery in smaller vehicles could be particularly significant for Maruti, whose product portfolio has historically given it a strong presence in this segment.

Small cars and SUVs expected to drive expansion

Bhargava said the passenger vehicle market would benefit from two key sources of growth: a revival in demand for small cars and continued strength in SUVs.

India’s automotive market has undergone a major shift in recent years, with SUVs gaining popularity among consumers. The anticipated improvement in small-car demand could broaden the market’s growth beyond the larger-vehicle segment.

For manufacturers, the combination could create opportunities across different price points as India's vehicle ownership base continues to expand.

India’s auto market targets another phase of growth

Reaching as many as 6.3 million passenger vehicles annually by fiscal 2030-31 would represent a substantial expansion of India’s domestic market.

The projection also underlines the strategic importance of India for global automakers, with manufacturers competing to benefit from rising vehicle demand in one of the world's largest emerging economies.

For Maruti Suzuki, the expected market growth is prompting a reassessment of its investment and product strategy as it prepares for the next stage of expansion.