Maruti Suzuki, the automobile manufacturer, has announced its intention to augment its manufacturing capability by a potential one million vehicles per year. The company’s statement, which was released on Wednesday alongside the announcement of its fourth-quarter earnings, also disclosed that Maruti Suzuki is planning to launch a seven-seater hybrid car, supplied by Toyota.
The statement revealed, “The board has provisionally authorized the creation of extra capacity of up to one million vehicles per year, taking into account the predicted market demand, including exports.
” The statement further indicated that despite the shortage of electronic components resulting in a production shortfall of approximately 170,000 units, Maruti Suzuki sold a total of 1,966,164 vehicles during the year, contributing to a record annual net profit of Rs 8,049.2 crore for the financial year 2022-23.
This figure is over twice the previous fiscal year’s net profit of Rs 3,766.3 crore, as stated in the announcement.
According to the statement, the sales volume for the fiscal year 2022-23 reached 1,966,164 units, marking a 19% increase from the previous year’s sales volume of 1,652,653 vehicles. Out of this total, 1,706,831 units were sold domestically, with exports of 259,333 units representing the highest ever recorded.
Furthermore, the company reported net sales of Rs 112,500.8 crore in the 2022-23 fiscal year, up from Rs 83,798.1 crore in the FY 2021-22.
In a video call with journalists after the announcement of the results, R.C. Bhargava, the chairman of Maruti Suzuki India, stated, “The year 2022-23 has been significantly better than the previous year, despite facing a variety of headwinds. The ongoing conflict in Ukraine has had a negative impact, global inflation has risen sharply, commodity prices spiked at the beginning of the year, and semiconductor problems persisted, resulting in a significant loss of production.”
During its 40th anniversary year, Maruti Suzuki achieved its highest-ever annual sales volume of 1,966,164 vehicles and reached an annual turnover that surpassed the Rs 1,00,000-crore mark, according to Bhargava.
He also revealed that, based on projected market demand, the company’s board has sanctioned the establishment of additional capacity of up to 1 million vehicles per year.
Bhargava then discussed the launch of a new product in the premium segment, which will be supplied by Toyota. He stated, “The vehicle will be a top-of-the-line, three-row, strong hybrid car with a high price point. I don’t anticipate the sales volume to be very high, but it will be a groundbreaking vehicle in terms of being carbon-friendly. It will be a hybrid, and we intend to release it in approximately two months.”
