Pricey Wheels: 88% of Indians Priced Out as Maruti Suzuki Grapples with Profit Pressures

Maruti Suzuki Chairman R.C. Bhargava revealed that only 12% of Indian households (earning over ₹12 lakh/year) can afford new cars, as small car sales fell 9% in FY25 amid rising prices and shifting consumer preferences. The company’s Q4 net profit slipped 1% YoY to ₹3,911 crore, though annual profit rose 7.5% to ₹14,500 crore on record exports and SUV demand.

 

Key insights:

 

Affordability crunch: Hatchback prices surged 50% since FY18, pushing buyers toward used cars or Maruti’s subscription model (10,000+ sign-ups by March 2025).

 

Export lifeline: Overseas shipments grew 17.5%, contributing 43% of India’s PV exports.

 

EV shift: Maruti plans six EVs by FY31 to counter BYD’s rise (Q1 profit: $1.3B vs. Maruti’s $1.7B annual profit).

 

Sources: Business Standard, Times of India, Maruti Suzuki