Maruti Suzuki India Limited , India's leading automobile manufacturer, has announced significant changes to its business strategy and leadership structure, signaling a bold move towards future mobility solutions and sustainability.

Board Approves Director Re-appointment

The company's board has approved the re-appointment of Kenichiro Toyofuku as Whole-time Director designated as Director (Sustainability) for a three-year term from December 5, 2025, to December 4, 2028. Toyofuku, who holds a BA in Economics from Keio University, Japan, brings a wealth of experience from his roles at METI Japan, World Bank, and Suzuki Motor Corporation.

Expansion of Business Scope

In a move that underscores Maruti Suzuki's commitment to adapting to the evolving automotive landscape, the board has approved significant alterations to the company's Memorandum of Association. These changes expand the company's business scope to include:

1. Fleet and mobility services
2. Used vehicle trading
3. EV charging infrastructure
4. Carbon credits trading
5. Vehicle recycling operations

New Business Segments

The company is set to venture into six new business segments, subject to shareholder approval:

1. Integrated Fleet and Mobility Services: This includes subscription services, shared mobility, and last-mile connectivity solutions.

2. Used Vehicle Business: Maruti Suzuki will engage in purchasing, selling, and marketing pre-owned vehicles, along with providing related value-added services.

3. EV and Alternative Fuel Infrastructure: The company plans to set up and manage charging infrastructure for electric vehicles and other alternative fuel-powered vehicles.

4. Consultancy and Technical Services: Maruti Suzuki will offer advisory services in mobility solutions, vehicle design & engineering, and testing services.

5. Carbon Credit Trading: The company will engage in trading, acquiring, and monetizing carbon credits and other environmental instruments.

6. End-of-Life Vehicle Processing: Maruti Suzuki will enter the business of collecting, dismantling, and recycling end-of-life vehicles and automotive scrap.

Corporate Governance Updates

The board meeting, which commenced at 11:00 a.m. on July 31, 2025, also approved the appointment of Price Waterhouse Chartered Accountants LLP as the Statutory Auditors for a term of five years, starting from the conclusion of the 44th Annual General Meeting.

Shareholder Approval and Next Steps

These significant changes, including the director re-appointment, business expansion plans, and auditor appointment, will be presented for shareholder approval at the upcoming Annual General Meeting scheduled for August 28, 2025.

Maruti Suzuki's strategic moves reflect the company's vision to remain at the forefront of India's automotive sector, embracing new technologies and sustainable practices while expanding its service offerings in the rapidly evolving mobility landscape.

Maruti Suzuki , India's leading automobile manufacturer, is expected to report weak quarterly results for Q1, with profit after tax (PAT) likely declining 16% year-on-year according to average estimates from six brokerages. The company's performance is anticipated to be impacted by muted domestic volumes and an unfavorable product mix.

Projected Financial Performance

• Revenue is projected to grow by a modest 2.00% compared to the previous year
• Total vehicle dispatches stood at approximately 528,000 units, representing only a 1.00% year-on-year growth

Key Factors Affecting Performance

Shift in Product Mix

• Export contribution increased to 18.00% from 13.50% last year
• Higher-margin UV (Utility Vehicle) share dipped slightly to 30.70% from 31.30%

Quarter-on-Quarter Performance

• Domestic volumes fell 17.00% quarter-on-quarter
• Exports rose 14.00% during the same period

Margin Pressure

EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) margins are expected to remain flat or contract year-on-year:

• Estimates range from 10.50% to 10.90%
• This represents a decline of 170-220 basis points from the previous year

The margin pressure is attributed to:

• Lower scale
• Full-quarter Kharkhoda plant costs
• Higher share of low-margin exports

These factors are partially offset by the rollback of one-time expenses from the previous quarter.

Varied Analyst Projections

Individual brokerage PAT estimates show a wide range:

• Lowest estimate: 9.50% year-on-year decline
• Highest estimate: 19.00% year-on-year decline

As Maruti Suzuki navigates through these challenging market conditions, investors and industry observers will be closely watching the official Q1 results to gauge the company's performance and future outlook in the competitive Indian automotive sector.