Maruti Suzuki Looking At Record Production Levels In FY22; An Uptick Of 42 Per Cent From FY21: Report

India’s largest carmaker Maruti Suzuki is anticipating record production levels for FY 2022. The company is estimated to lift the country’s passenger vehicles market by 25 per cent as it accounts for 50 per cent of the total sales.

The automobile manufacturers have informed their vendors about its plans to raise production by 42 per cent from FY21 to 2.05-2.07 million units in FY22. One of the spokespersons from Maruti Suzuki told Economic Times that the company hasn’t yet zeroed upon its business plan for FY22.

However, Suzuki Motors Gujarat is looking to take up one-third of the production responsibilities. The rest of the requirements will be allotted to the other plans situated in the northern part of the country.

The new Swift will be made entirely in Gujarat whereas high-volume vehicles such as Belano, Dzire and Swift will comprise around 30 per cent of the initial production schedule.

This exponential rise in production is slated to round off the company’s compounded annual growth rate to be 6.2 per cent between FY12 and FY22 in comparison to 1.4 per cent between FY11 and FY21.

IHS Markit associate director Gaurav Vangaal told ET, “An outperformance by Maruti has protected the Indian market even in difficult market environment and volume growth at Maruti will only add wheels to the Indian passenger vehicle market growth led by economic recovery.”

He added that the trajectory of the previous six months is an indication of the coming year and termed it to be very promising for both Maruti Suzuki and India. However, Vangaal cautioned that shortage of semiconductors coupled with price hike could probably dampen the current optimism.

Maruti has also asked its vendors to prepare for an output plan of 1, 65,000-1, 70,000 units for March and April 2021 despite the ongoing undersupply of semiconductors.