Maruti Suzuki Share Price in Focus as Company Accelerates Production to Clear 2,00,000 Order Backlog

Maruti Suzuki is ramping up its production capabilities to address a significant backlog of 2,00,000 car orders, primarily small passenger vehicles.  

The company aims to increase production to 5,00,000 units by the end of FY27 as per the Business Standard report. 

Production Expansion Plans 

Maruti Suzuki Chairman R C Bhargava has outlined plans to boost production across its facilities.  

The expansion includes manufacturing 2,50,000 cars at the Kharkhoda plant in Haryana and another 2,50,000 at the Gujarat plant.  

This strategic move is designed to address the current backlog and meet the growing demand for small cars. 

The flexibility of the assembly lines at these factories allows for a seamless transition between different models, which is crucial in fulfilling the high demand for small cars.  

Currently, dealers are maintaining an inventory level of just one week, significantly lower than the standard 30-day inventory norm. 

Electric Vehicle Strategy 

Maruti Suzuki has ventured into the electric vehicle (EV) market with the launch of the e-Vitara. However, the company faces challenges in qualifying for the production-linked incentive (PLI) scheme due to the high import content of over 50% in its electric cars.  

To overcome this, Maruti Suzuki is working on reducing the import content by optimising the packaging of lithium-ion batteries. 

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Impact of GST Rate Reduction 

The reduction in GST rates on small cars has positively impacted the industry, according to Bhargava. Cars up to 4 metres in length with engines of 1,200 cc, which now attract an 18% GST instead of the previous 28%, account for nearly 70% of sales.  

Despite initial concerns, the GST rate cut has not adversely affected government revenues, as the increase in small car sales has compensated for the lower tax rate. 

Global Factors Affecting Costs 

The ongoing US-Iran conflict is expected to influence raw material costs, particularly steel, which could increase overall production costs for Maruti Suzuki.  

Bhargava highlighted the dilemma of whether to absorb these costs, which could impact profitability, or pass them on to consumers.  

Many car manufacturers currently operate with profit margins below 5%, and those producing EVs are still facing financial losses. 

Maruti Suzuki India Share Price Performance  

As of April 21, 2026, at 10:22 AM, Maruti Suzuki India share price on NSE was trading at ₹13,506.00 up by 0.42% from the previous closing price. 

Conclusion 

Maruti Suzuki's efforts to ramp up production and adapt to market demands underscore its commitment to addressing the backlog of orders. The company's strategic expansion in production, coupled with its focus on reducing import content in EVs, highlights its adaptability in a dynamic market environment. 

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