Maruti Output at Record High in FY26, Market Share Drops to 13-year Low

Maruti Suzuki India reported its highest-ever annual production in FY26, crossing 23.4 lakh units, marking a major milestone for the country's largest carmaker. The company said it is the only passenger vehicle manufacturer in India to achieve this scale, and also the only facility within Suzuki Motor Corporation's global network to reach such volumes.

The production surge was driven by strong output across key models, with the Dzire, Fronx, Swift, Ertiga and Baleno each crossing the 2 lakh unit mark during the fiscal year.

Managing Director and CEO Hisashi Takeuchi said the milestone reflects a robust ecosystem built over decades, supported by collaboration with employees, vendors and dealers, along with favourable policy support. He added that the company plans to scale production capacity to around 40 lakh units annually in the coming years, backed by expansion plans including a new facility in Gujarat.

Maruti Suzuki currently operates manufacturing plants in Gurugram, Manesar and Kharkhoda in Haryana, along with Hansalpur in Gujarat, with a combined installed capacity of about 24 lakh units per annum.

Market Share Declines Amid Changing Demand

Despite the record production, Maruti Suzuki's dominance in the passenger vehicle (PV) market continued to weaken. The company's market share fell to a 13-year low of 39.26% in FY26, marking the third consecutive year of decline, according to data from the Society of Indian Automobile Manufacturers.

The carmaker, which once commanded nearly 50% of the market, has lost around 12 percentage points since FY20.

The decline reflects a shift in consumer preferences towards sport utility vehicles (SUVs), a segment where Maruti has relatively lower presence. While the company continues to dominate the sub-4 metre segment with models like Wagon R, Swift and Baleno, growth in this category slowed to under 2% in FY26, compared to 11% growth in utility vehicles.

Rising Competition From Rivals

Maruti's market share erosion has coincided with strong gains by competitors. Mahindra & Mahindra more than doubled its market share over five years to 14.21% in FY26, driven by strong demand for models such as Thar, Bolero and Scorpio, emerging as the second-largest carmaker in India.

Tata Motors followed with a 13% market share, supported by models like Nexon, Punch and Safari.

The company's partnership with Toyota Motor Corporation has delivered mixed outcomes. The Grand Vitara, rebadged as the Toyota Urban Cruiser Hyryder, has at times outperformed its Maruti counterpart, indicating internal competition.

In the premium MPV segment, Maruti continues to lag, with the Invicto selling around 300–400 units a month compared to 9,000–11,000 units for the Toyota Innova Hycross, highlighting challenges in higher-end segments.