Maruti Suzuki Chairman: Swift Reforms for Business Growth

Maruti Suzuki India Ltd Chairman RC Bhargava recently urged both central and state governments to expedite reforms and cultivate a more business-friendly environment. He also called on political parties to support initiatives that foster wealth creation for a more equitable society.

Calls for Economic Acceleration

Bhargava emphasized that the car industry’s post-GST2.0 growth might necessitate adjustments to company long-term targets. He projects the overall industry to expand significantly in the coming years.

• Industry projection: 6.1 to 6.3 million units by FY 2030-31.
• Small car market share: Expected to increase significantly faster than previous years.

The chairman praised recent GST collections, noting their buoyancy despite tax rate reductions on over 90 percent of products. He attributed this positive economic performance directly to ongoing reforms.

Strategic Shift Towards Biogas

Maruti Suzuki is actively pursuing diverse technologies to meet India’s net-zero objectives. A key focus is biogas, which the company highlights as a viable alternative to imported CNG.

Biogas is a clean, renewable energy source with zero import content. Its production yields valuable byproducts like fermented organic manure, which can boost agricultural productivity, prevent crop burning, and increase farmers’ income.

• Board approval: Initial investment of Rs 561 crores.
• Project scope: Establish four biogas plants.
• Future plans: Substantial investments in biogas production and distribution.

This initiative aligns with the government’s GOBARdhan scheme to promote compressed biogas. Maruti Suzuki collaborates with the Indian Agricultural Research Institute, Pusa, whose preliminary reports support their findings.

Manufacturing Adaptability Drives Sales

Maruti Suzuki has strategically adjusted its manufacturing capacity, making new production lines flexible to adapt to market shifts. This includes responding to the decline in small car sales and the rise of the SUV market.

• Maruti Suzuki sales growth (Q1 FY27): 38 percent.
• Industry growth (Q1 FY27): 28 percent.
• Small car sales growth (Q1 FY27): 35 percent.

This flexibility has already yielded strong results, with the company surpassing overall industry growth in the first quarter of fiscal year 2027.