India’s Car Industry Projected to Reach 6.3 Million Units by 2031, Fuelled by GST 2.0

Maruti Suzuki India’s chairman R.C. Barge announced at the company’s AGM that the nation’s passenger‑vehicle market could swell to between 6.1 and 6.3 million units by 2031. The growth outlook is anchored in the benefits derived from GST 2.0, which has streamlined tax compliance and bolstered demand across the automotive value chain.

Barge highlighted that the small‑car segment is set to outpace growth observed in the previous half‑decade, driven by improved affordability and a stable tax environment despite the ongoing West Asia war. He also noted that GST collections have hit unprecedented levels, reflecting the reform’s resilience.

“The reforms have been a game‑changer; without them, the economy would have faced far greater challenges,” he said, praising Prime Minister Narendra Modi, Finance Minister Nirmala Sitharaman, and the entire administration for their decisive action.

He appealed to both state and central governments to maintain reform momentum, adopt digital tools, and cut down procedural delays, which he believes will accelerate asset creation, increase fiscal revenue, and ensure more uniform development.

To meet the projected demand, Maruti Suzuki plans to raise its production capacity to 2.9 million vehicles by the close of FY 2026‑27 and to 3.65 million by FY 2030‑31. The firm has also earmarked ₹77,500 crore in capital expenditure through FY 2031 to support this expansion.