A robust comeback in small car sales, largely driven by recent GST rate reductions, has propelled Maruti Suzuki towards a decision on its fifth manufacturing plant. Chairman R. C. Bhargava indicated that this significant announcement is likely within the next few months. The surge in demand for entry-level vehicles suggests a dynamic shift in consumer preferences, potentially influencing product strategies across the automotive sector. The financial implications of this market trend are substantial, prompting Maruti Suzuki to revise its long-term financial projections, which previously targeted doubling turnover and reaching 40 lakh annual production units by FY31. The proposed fifth plant, a substantial Rs 35,000 crore investment slated for Gujarat, is a testament to the company’s optimistic outlook. Data shows that the collective sales contribution of models like the Alto K10, S-presso, Wagon R, and Celerio has risen to 20.5% after the GST cut, from 16.7% previously. This resurgence is expected to significantly boost sales volumes in the second half of the current fiscal year.
