Maruti Suzuki’s Chairman R. C. Bhargava has confirmed that the company is on the verge of deciding the location for its fifth manufacturing plant. An announcement regarding this significant expansion is anticipated in the upcoming months. This strategic push follows a notable revival in the small car market, spurred by the recent reduction in GST rates. Bhargava suggests this trend could prompt a reassessment of product mixes by various car manufacturers, challenging earlier assumptions about a universal shift towards larger vehicles. The company’s long-term financial and production goals, including a Rs 1.68 lakh crore turnover target by 2030-31 and 40 lakh annual unit production, are being revised to reflect the evolving market dynamics. The impact of GST is expected to become more pronounced in the latter half of the current fiscal year, promising a substantial increase in sales volumes compared to the first half. The proposed Rs 35,000 crore investment in a new Gujarat-based plant underscores Maruti Suzuki’s forward-looking strategy. Furthermore, sales data shows that entry-level small cars now account for 20.5% of retail sales, up from 16.7% prior to the GST adjustments.
