Suzuki prioritizes India despite lowering EV and sales targets

Suzuki Motor has lowered its India sales target and scaled back its electric vehicle (EV) rollout, even as the country remains a key market in its global expansion plans.

The Japanese automaker now expects to sell 2.5 million vehicles in India by March 2031, down from its previous projection of 3 million, and will introduce four EVs instead of six.

Despite the revisions, Suzuki plans to expand its SUV lineup and increase manufacturing capacity in India to 4 million units annually at an "appropriate time," rather than by March 2031 as previously planned. The company has also allocated 60% of its planned 2 trillion yen ($13 billion) investment to India, reinforcing its role as a major production hub for exports to the Middle East and Africa, including EVs.

The adjustments come as Suzuki’s local unit, Maruti Suzuki, faces rising competition from feature-rich SUVs produced by Tata Motors and Mahindra & Mahindra. Maruti’s share of India's passenger vehicle market has dropped from 51% in March 2020 to 41%, delaying its target of regaining a 50% share from 2026 to 2031.

The slowdown in EV adoption globally, coupled with Tesla's impending entry into India, has further influenced Suzuki's strategy.

On a broader scale, Suzuki aims to increase global sales by a third to 4.2 million vehicles by fiscal year 2030. The company is also targeting an operating profit margin of 10%, up from 9.2% last year, and plans to grow revenue by 49% to 8 trillion yen.