Suzuki Predicts India’s Car Market to Boom Fivefold by 2047 with EV Surge and Strategic Moves

India’s car market is expected to hit 20 million units by 2047, largely due to the rise of electric vehicles (EVs), says Suzuki Motor Corp. Executive Vice President Kenichi Ayukawa. Maruti Suzuki India Ltd., Suzuki’s subsidiary, aims to increase its market share from around 40% to 50% by 2030.

India’s growing economy and expanding middle class present a big opportunity for Suzuki, which has been a top-selling automaker in the country since 1983 with models like Swift and Brezza. To maintain its lead, Suzuki plans to launch its first EV in India and Europe next year after showcasing it at the auto expo in January.

Ayukawa mentioned that 4.2 million passenger vehicles were sold in India in the fiscal year ending March. For comparison, 3.1 million cars were sold in the US last year, while Europe saw 15 million in sales, and China led the market with 26 million.

Suzuki’s upcoming eVX is a premium EV, but the company also plans to introduce affordable, compact models with lighter batteries. Suzuki aims for 15% of its sales in India to be EVs by 2030. Although India is price-sensitive, there is growing interest in crossovers and SUVs, which are strong areas for competitors like Tata and Mahindra.

Tata Motors, the third-largest carmaker in India, leads in fully-electric models and expects its EV business to be profitable by 2026. Suzuki will focus on everyday-use models and may start producing batteries in India within 5 to 10 years.

Suzuki and Toyota Motor Corp. have a strategic partnership where Suzuki focuses on smaller cars and Toyota on larger models. Toyota’s EV technology will support Suzuki’s product development. Additionally, Suzuki sees potential in compressed natural gas (CNG) cars, which are cheaper than gasoline in India. Maruti Suzuki sold 483,000 CNG cars in the last fiscal year, up 47% from the previous year.

Suzuki also plans to operate four plants converting methane from cow manure into fuel for CNG cars, though there are challenges in monetizing the leftover organic fertilizer.