Maruti Suzuki Annual Report FY25: the SUV pivot that was always going to happen.

Maruti Suzuki's FY25 Annual Report is quietly one of the most consequential documents to have come out of Indian corporate India this year. The reason: it is the first Annual Report where the SUV pivot, the EV capex commitment, and the RoCE trajectory are all visible in the same numbers.

For a decade, the market bear-case on Maruti has been the same three things. First, the SUV mix disadvantage. Second, the EV pivot that would eventually require a capex hit. Third, the RoCE compression that would come from both of the above. All three theses now need to be revised.

SUV share crosses 27%

The Brezza-Grand Vitara-Fronx-Jimny cohort has done what few thought possible: it has restored Maruti's position in a segment where the company was structurally weak. SUVs now contribute 27.4% of domestic volumes versus 19.1% two years ago. The mix shift has driven both realisation improvement and margin expansion.

— VK