Over the past decade, Maruti Suzuki India Limited has noted a two fold increase in its share in production volumes for Suzuki Motor Corp. What stood at 27 to 28 percent at the end of 2008, increased to 52 percent in 2017 which went up to 54.2 percent in 2018.
2018 saw Maruti increase its contribution to parent Suzuki, increase to an all time high. Apart from contributing in sales, India also accounts for 34 percent of the consolidated revenues for Suzuki Motors in FY18.
RC Bhargava, chairman, Maruti Suzuki has stated that this growth rate will continue even further; both in the local market, as well as globally. Suzuki Motors owes this status to Maruti India, where one in every two cars sold locally are manufactured by Maruti Suzuki at their plants in Gurgaon, Manesar and Gujarat.
Maruti Suzuki sold a total of 17,31,179 units in 2018, reporting 8% growth. During 2018, the company sold 3.2 cars every minute, selling 4,742 cars each day of the year. It is also from India that Suzuki and Maruti Suzuki export to over 125 countries and have so far exported over 1 lakh units in the ongoing financial year.
In domestic markets as well, the company continues its command, claiming top spot on the list of top 10 best selling cars each month. In the UV segment, the Maruti Brezza dominates the scene, even though it is offered exclusively powered by a diesel engine.
Maruti Suzuki is also embarking on its electric mobility development with its first electric car in the works. The company showed off the prototype of its electric vehicle at the MOVE Global Mobility Summit in Delhi last year and has been actively testing a fleet of electric vehicles across varied terrains and climatic conditions in the country.
Suzuki Motor Corporation has seen total volumes increase from 2.62 million to 3.43 million over the past decade. This inspite of the fact that in Japan its production dipped from 1.21 million to 1.02 million. Suzuki also stopped operations in two of the biggest car markets – US and China.
Operations in India on the other hand noted a production increase by two and half times from 7,50,000 at the end of 2008 to 1.86 million at the end of 2018. With this growth rate, with new plants being set up, investments planned and new technologies coming into effect, it is expected that Maruti Suzuki’s contributions to Suzuki Motors global production could go up to 64 percent by 2023.
Suzuki Motors banks on Maruti Suzuki playing a major role in its global survival. This is primarily due to the fact that ageing population in countries like China and Japan along with shrinking birth rates has had an impact on Suzuki sales in these countries, while the company also faces sales constraints in countries like Thailand and Brazil.