Indian PV market to nearly double in size by FY31: Maruti MD Takeuchi

Automobile businesses need to be 'reviewed, re-aligned' for higher scale of operations, he says

The Indian passenger vehicle (PV) market is expected to nearly double to about 7 million units by 2030-31 (FY31), said Hisashi Takeuchi, chief executive officer and managing director of Maruti Suzuki India (MSIL), on Wednesday.

“Today, India has become the third largest automobile market in the world…This has been possible only because of the continued support and hard work of the auto component industry. Thank you,” he said in a speech at the annual session of Automotive Component Manufacturers Association of India (ACMA).

It is estimated that, by FY31, the annual PV market size will expand to 6-7 million units.

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Domestic PV sales went from 3.069 million in 2021-22 to 3.889 million in 2022-23, marking a 26.71 per cent increase due to high demand after the pandemic, though supply chain issues continued to affect the market.

Takeuchi said MSIL is optimistic about the growth in exports. “This means the scale of operations will nearly double from the present levels.”

“Our businesses will therefore need to be reviewed and re-aligned to the new and much higher scale of operations which will spread across multiple locations,” he said.

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At the same time, the auto industry needs to find ways to make its operations sustainable and environmentally friendly, he said.