A market-leading auto company has unveiled an ambitious plan to produce 70,000 electric vehicles (EVs) in FY26, aiming to expand its footprint in the rapidly growing electric mobility sector. This move signals the company’s strong commitment to sustainable transportation and sets the stage for increased competition with major players like Tesla in the EV market.
Price Movement
During Monday’s trading session, shares of Maruti Suzuki India Ltd reached an intra-day high of Rs.11,896.00 apiece, 1.7 percent higher than its previous closing price of Rs.11,698.00 apiece. However, the stock retreated later and is trading at Rs.11,845.00 apiece. Over the past five years, the stock has delivered over 120 percent returns.
EV Production Plans
Maruti Suzuki, India’s largest carmaker, is gearing up to begin domestic sales of its first electric vehicle (EV) before the end of September 2025. The company aims to produce approximately 70,000 EVs in FY26, with a significant portion of production allocated for export markets. This marks the company’s formal entry into India’s rapidly expanding EV segment.
During the FY25 earnings conference, Maruti Suzuki Chairman R.C. Bhargava revealed that the initial domestic sales would commence by the end of September 2025. He also mentioned that exports would form the bulk of this early production. The company’s strategy includes leveraging Suzuki’s global network to ensure strong export volumes, while carefully navigating the challenges of domestic adoption.
Maruti’s EV Models
The company’s long-term EV plans include launching multiple electric models by FY 2030-31, with a target of having 15 percent of its sales come from battery EVs, 25 percent from hybrids, and 60 percent from internal combustion engines, including CNG and flex-fuel variants. Maruti’s first production-ready EV, the e Vitara, is a compact SUV with two battery options (49kWh and 61kWh), offering a range of over 500 km. It is set for launch in mid-2025 and was recently showcased at the Bharat Mobility Global Expo 2025.
Rising Competition from Tesla
Elon Musk’s Tesla is on track to officially sell its first electric vehicle (EV) in India within the next 2-3 months, with the company beginning certification and homologation processes. Tesla has secured a five-year lease for a 4,000-square-foot showroom space in Mumbai’s Bandra Kurla Complex, marking the brand’s entry into the Indian market. However, there are no plans for local vehicle manufacturing at this time.
Tariff Tensions
While Tesla seeks zero duties on EV imports to India, the government may face challenges in granting such concessions, especially since it is negotiating Free Trade Agreements with the EU and UK, which would require similar duty cuts.
Tariffs differ based on whether the vehicles are imported as completely knocked down (CKD) units for local assembly or as completely built-up (CBU) units. Other foreign automakers, including Hyundai, Kia, and VW Skoda Group, are also awaiting clarity on tariffs before applying for India’s forthcoming Electric Car Manufacturing Policy.
Brokerage Target
BofA Securities has set a target price of Rs.14,400.00 for Maruti Suzuki, indicating a potential upside of 23 percent from its current price of Rs.11,755.00 apiece. This optimistic outlook reflects strong expectations for the company’s future performance, driven by its plans for expanding its electric vehicle (EV) portfolio and maintaining its dominant position in the Indian automotive market.
Earnings Report
In its latest financial update, Maruti Suzuki India Ltd reported consolidated revenue of Rs.40,920 crores for Q4 FY25, reflecting a 6.4 percent increase from Rs.38,471 crores in Q4 FY24. However, the company’s net profit declined slightly by 1 percent to Rs.3,911 crores, compared to Rs.3,952 crores in the same period last year.
Written by – Siddesh S Raskar
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