Maruti Suzuki Set to Lead with 4 Million Units by 2031, Says Motilal Oswal – Buy Now Before the Stock Soars

Motilal Oswal, a leading domestic brokerage, believes that Maruti Suzuki India will continue to dominate the passenger vehicle (PV) market and perform better than the industry in FY25.

The brokerage credits Maruti’s recent model launches, diverse product lineup, and advanced powertrain technologies for its expected continued success. SUVs now make up about 50% of the PV market, a big jump from 23% in FY19. Maruti has strengthened its position in the SUV segment with new launches like the Invicto, Grand Vitara, Jimny, Brezza, and Fronx.

While hatchback and sedan demand has been weaker, Maruti aims to revive interest in these segments with updates like the new Swift, featuring the Z series engine that offers better fuel efficiency and lower emissions.

Motilal Oswal also noted the rise of electric vehicles (EVs) but emphasized the importance of strong hybrid technology, CNG, ethanol, and biogas options. By FY31, Maruti Suzuki plans to diversify its powertrain mix, with battery electric vehicles (BEVs) expected to make up 15% of domestic PV sales, hybrids 25%, and the remaining 60% from CNG, biofuels, and internal combustion engines (ICEs). The company plans to launch its first BEV in 2025, with six more by 2031.

Strong Export Growth and Market Leadership

Maruti Suzuki saw a 10% year-on-year (YoY) increase in export volume, reaching about 283,000 units in FY24, compared to a 2% YoY growth in overall industry exports. The company continues to lead in exports with a 42% market share.

In FY24, exports accounted for about 13% of Maruti’s total sales, similar to the previous year. Maruti exported new models like the Jimny, Fronx, and Grand Vitara, with Africa, Latin America, the Middle East, and ASEAN regions being key destinations.

Supported by Suzuki Motor’s technology and global distribution network, Maruti Suzuki aims to capitalize on medium- to long-term opportunities.

Aiming for 4 Million Annual Capacity

Maruti Suzuki’s ambitious FY31 growth strategy includes increasing production to 4 million units annually. The company has added a new production line at its Manesar plant, increasing capacity by 100,000 units annually. Additionally, a new production line at Suzuki Motor Gujarat (SMG) will add 250,000 units, and a new greenfield facility in Gujarat will add another 1 million units.

In Haryana, the construction of a new manufacturing facility at Kharkhoda is progressing well, with an initial capacity of 250,000 units set to be operational by FY25, with plans to expand to 1 million units.

With car ownership in India at just 3% of the population, there is significant growth potential as the PV market becomes the third largest in the world.

Target Price Set at ₹15,160

Motilal Oswal expects Maruti Suzuki to see a 140 basis point margin improvement to around 13% by FY26, driven by a better product mix, leading to a steady 15% compound annual growth rate (CAGR) in earnings over FY24-26E.

Any reduction in GST or favorable government policies for hybrids could further boost the stock, with Maruti Suzuki being a key beneficiary. The stock currently trades at a multiple of 25.5x for FY25E and 21.9x for FY26E consolidated earnings per share (EPS).

The brokerage maintains a ‘buy’ rating with a target price of ₹15,160 per share, based on a 26x multiple of June 2026E consolidated EPS.