Maruti Suzuki, India’s largest carmaker, has reported a substantial increase in demand for entry-level cars in the third quarter of fiscal 2025-26. The company achieved record domestic sales of 564,669 units between October and December, marking a sharp rise from 466,993 units during the same period last year. The growth is largely attributed to the rising share of first-time car buyers, which now stands at 47 per cent of total customers, compared to approximately 40 per cent previously.
The surge in demand was closely tied to the small-car segment, which has seen renewed growth after a period of subdued performance. Models such as Alto, S-Presso, Baleno, Celerio, Ignis, Swift, Dzire, and Wagon R contributed significantly to this increase, with mini and compact cars accounting for around 46.6 per cent of total domestic sales in Q3. Entry-level buyers were particularly attracted by price reductions following the government’s GST reforms, which reduced the tax rate for smaller petrol and diesel vehicles to 18 per cent from 28 per cent. This adjustment has lowered prices on several models by up to Rs 1.3 lakh, making cars more affordable for first-time buyers.
The SUV-styled S-Presso emerged as the cheapest car on sale, surpassing the Alto K10, reflecting renewed affordability in the passenger car segment. In addition to domestic sales, Maruti Suzuki’s total sales including exports reached 667,769 units during the quarter. Total net sales climbed to ₹475,344 million from ₹368,020 million in the same period last year, while net profit rose to ₹37,940 million, despite a one-time provision linked to new labour code requirements.
To meet the increasing demand, Maruti Suzuki is expanding its manufacturing capacity. The company recently signed a deal with the Gujarat government to establish a new plant in Kharoj and is set to begin operations at a second facility in Kharkoda, Haryana. This expansion is part of the company’s strategy to reclaim a 50 per cent share of the Indian car market.
Looking ahead, Maruti Suzuki is preparing to launch its first-ever electric vehicle, the e-Vitara, in India. Produced at the company’s Gujarat facility in Hansalpur, the e-Vitara is already available in European markets and Japan. It is expected to reach Indian roads in the final quarter of FY 2025-26, marking the company’s entry into the rapidly growing EV segment.
The strong Q3 performance reflects a combination of favourable GST reforms, small-car affordability, and increased interest from first-time buyers. Maruti Suzuki’s focus on mini and compact cars, coupled with upcoming EV launches and expanded manufacturing capacity, positions the company to sustain its growth and maintain a dominant presence in India’s automotive market.
