India’s automobile industry reveals stark contrasts when comparing inventory management between leading manufacturers. As of March 2025, Maruti Suzuki carries significantly leaner inventory levels compared to Tata Motors and Mahindra & Mahindra, reflecting differences in product focus, supply chain integration, and sales efficiency.
Maruti Suzuki reported inventories of Rs. 6,913 crore, far below Mahindra & Mahindra’s Rs. 20,331 crore and Tata Motors’ Rs. 47,269 crore. This wide gap is primarily due to Maruti’s stronger inventory turnover and efficient distribution model, which allows it to quickly push stock into the market compared to its peers.
On the turnover front, Maruti stands out with an inventory turnover ratio of 17.75, meaning it sells and replaces its inventory nearly 18 times in a year. In contrast, Mahindra’s turnover ratio is 4.96 and Tata Motors’ 5.77, highlighting their relatively slower movement of stock.
This is further emphasized by inventory days, Maruti holds stock for just 23.47 days on average, while Mahindra retains inventory for 77.51 days and Tata Motors for 63.48 days before converting it into sales.
When comparing year-on-year growth, Maruti Suzuki’s sales rose from Rs. 1,41,858 crore in FY24 to Rs. 1,52,913 crore in FY25, a growth of 7.8 percent. Its inventories increased from Rs. 5,318 crore to Rs. 6,913 crore, marking a 30 percent rise.
Mahindra & Mahindra’s sales advanced from Rs. 1,39,078 crore to Rs. 1,59,211 crore, up 14.5 percent, while its inventories climbed from Rs. 18,590 crore to Rs. 20,331 crore, a growth of 9.4 percent.
Tata Motors, meanwhile, saw sales move only marginally from Rs. 4,34,016 crore to Rs. 4,39,695 crore, a rise of just 1.3 percent, whereas its inventories declined from Rs. 47,788 crore to Rs. 47,269 crore, a slight drop of 1.1 percent.
This indicates that while Maruti Suzuki’s inventory growth outpaced its sales growth, its absolute stock levels remain far lower than its peers due to efficient inventory management and faster turnover.
In contrast, Mahindra & Mahindra and Tata Motors maintain higher inventory buffers relative to sales, reflecting longer supply chains, diversified product portfolios, and slower movement of stock across their networks.
Several structural factors explain why Maruti operates with much leaner inventory compared to Mahindra and Tata. Unlike its peers, Maruti is predominantly focused on passenger vehicles, especially standardised, mass-market models, which allows it to maintain predictable production cycles and streamlined stock management.
Its extensive dealer and distribution network enables rapid movement of vehicles from factories to customers, reducing inventory buildup. Additionally, Maruti’s strong supplier integration and long-term procurement relationships ensure shorter replenishment cycles and lower raw material stock.
In contrast, Mahindra and Tata Motors operate in multiple segments including SUVs, commercial vehicles, and electric vehicles. These categories require more components and complex supply chains, resulting in larger inventory holdings. Their diversified product lines also create variability in demand, necessitating higher buffer stock compared to Maruti’s standardized lineup.
In summary, Maruti Suzuki’s leaner inventories, faster turnover, and shorter inventory days reflect its superior supply chain efficiency and focus on mass-market passenger vehicles. Tata Motors and Mahindra, with broader portfolios in SUVs, EVs, and commercial vehicles, carry larger stock to manage complexity and ensure supply stability across segments.
Written By Manan Gangwar
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