Maruti Suzuki India Limited — Important, 20-02-2025: General Updates

Maruti Suzuki India Limited has laid out a new Mid-Term Management Plan for FY2025 to FY2030, reflecting its strategy for growth amid changing market dynamics.

**Financial Highlights:** The company aims to achieve a revenue target of 8 trillion yen and an operating profit of 800 billion yen by FY2030, with an operating profit margin of at least 10% and a return on equity (ROE) of 15%. This ambitious plan follows a review indicating that while revenue and profit targets were achieved ahead of schedule under the previous plan, market share, particularly in India, has declined.

**Strategic Initiatives and Growth Drivers:** The focus will be on enhancing product offerings, including an expanded line of battery electric vehicles (BEVs) and hybrid models, especially in India, which remains a key market with plans to increase production capacity to 4 million units annually.

**Business Developments:** New partnerships and collaborations, particularly in technology and innovation, amplify Suzuki's competitive edge. The plan emphasizes sustainable growth, including significant investments in carbon neutrality and electric vehicle technology.

**Market Position and Competitive Advantage:** By leveraging strong brand positioning and local manufacturing capabilities, Suzuki aims to maintain its leadership in the Indian automobile market while adapting to global trends, such as electrification and environmental compliance.

**Investor Implications:** With a clear pathway to sustainable growth and profitability targets, stakeholders are encouraged to watch closely as these initiatives unfold, which could lead to a positive outlook for the company in the mid to long term.