India's PV market to grow 1-2% in FY26, Maruti Suzuki to exceed pace: SMC

Suzuki Motor Corp expects India's PV sales to grow modestly in FY26 but Maruti Suzuki may outperform due to new SUV launches and rising exports

The sales of the passenger vehicle (PV) market in India are expected to grow by 1–2 per cent year-on-year (YoY) in 2025–26, while Maruti Suzuki India (MSIL) is projected to exceed this growth due to the launch of two new sport utility vehicles (SUVs), stated its parent company Suzuki Motor Corporation (SMC) on Monday.

 

PV wholesales grew by 2 per cent YoY in 2024–25, driven by demand for SUVs, reaching an all-time high volume of 4.3 million units.

 

MSIL’s wholesales stood at 1.795 million units in 2024–25, recording a 0.1 per cent YoY increase, according to SMC. However, its retail sales rose by 3.7 per cent YoY.

 

“Wholesales forecast for the next fiscal year 2025–26 is that it is expected to exceed the market growth rate (which would be 1–2 per cent as per estimates) due to the launch of two new SUV models,” SMC stated.

 

MSIL’s exports crossed 300,000 units for the first time in 2024–25, growing by 17.5 per cent YoY. SMC said MSIL’s exports are expected to increase further by about 20 per cent YoY in 2025–26.

 

MSIL Chairman R C Bhargava had said on 25 April that car purchases in India are largely limited to the top 12 per cent of households with an annual income exceeding ₹12 lakh, while even small cars have become unaffordable for the remaining 88 per cent.

 

MSIL reported a 4.3 per cent YoY decline in consolidated net profit for the fourth quarter of 2024–25, falling to ₹3,711 crore, due to a continued slump in small car sales and weak demand in urban markets.