Maruti Suzuki India is facing “a small delay” in finalising the site to set up a plant with an annual capacity of 10 lakh units although the upcoming plant at Kharkhoda in Haryana is on track to start production by 2025-26, company chairman R.C. Bhargava said on Tuesday.

Addressing shareholders at the company’s annual general meeting, Bhargava reiterated Maruti Suzuki’s commitment to low-cost, small cars, emphasising that a temporary downturn in demand won’t alter this strategy.

He expressed optimism about a revival in small car demand within the next two years.

Bhargava announced a slight delay in finalising the site for the new plant, which is planned to have an annual capacity of 10 lakh units. The company is actively working to expedite this decision.

Earlier this year, Suzuki Motor Corporation president Toshihiro Suzuki announced a ₹35,000-crore investment to establish a second manufacturing facility in Gujarat with an annual capacity of 10 lakh units.

In addition to the new plant in Kharkhoda, Maruti Suzuki is also expanding its sales and service network in rural areas to cater to the growing demand for affordable transportation.

Regarding the company’s electric vehicle (EV) programme, Bhargava said six EV models are expected to be introduced by 2030-31.

The first model will enter production and sales within a few months and will be exported to Europe and Japan.

“Electric vehicles are likely to be adopted gradually over the years as the multiple challenges facing the consumers are overcome.

“There can be little doubt that during the period this is happening, all other vehicles also need to become cleaner, so that the carbon emission and other environmentally degrading pollutants are minimised,” Bhargava said.

In response to a query from a shareholder on companies such as Tata Motors and Mahindra opposing hybrids cars, Bhargava said, “I have been repeating this frequently that hybrid car is not a vehicle which is in conflict with electric vehicles.”

Hybrid cars are essentially required to reduce the pollution and the oil consumption of vehicles, which are not electric vehicles.

Bhargava reiterated the company’s customer-centric approach and its commitment to working with the government to achieve national goals.He emphasised that short-term benefits will not compromise long-term societal and company well-being.

Maruti Suzuki outlined its road map for the next seven years, aiming to increase production to approximately 4 million units and expand exports to 7.5-8 lakh units annually by 2030-31.