Please note that this conference is being recorded. I now hand the conference over to Mr. Pranav Ambaprasad. Thank you, and over to you, sir.
Thank you, Darwin. Ladies and gentlemen, good afternoon once again. Welcome you all to the Q1 FY25 earnings call. May I introduce you to the management team from Maruti Suzuki? Today, we have with us our Chief Investor Relations Officer, Mr. Rahul Bharti, and CFO, Mr. Arnab Roy. Before we begin, may I remind you of the safe harbor? We may be making some forward-looking statements that have to be understood in conjunction with the uncertainty and the risks that the company faces. I also like to inform you that the call is being recorded, and the audio call and the transcript will be available at our website. Please note that in case of any inadvertent error during this live audio call, the transcript will be provided with the corrected information.
The conference call will begin with a brief statement on the performance and outlook of our business by the Chief Investor Relations Officer and Executive Officer, Corporate Office, Mr. Rahul Bharti, after which we'll be happy to receive your questions. I would now like to invite our CIRO, Mr. Rahul Bharti. Over to you, sir.
Thanks, Pranav. Good afternoon, ladies and gentlemen, and thank you for joining us. Before we come to the results, first, I'll share the major business highlights of the first quarter. In April 2024, the company at its Manesar facility commissioned an additional vehicle assembly line, having a capacity to manufacture 100,000 units per annum. With this additional assembly line, the total manufacturing capacity at Manesar facility stands at 900,000 vehicles per annum. The company launched its fourth-generation Epic New Swift in May 2024. As a market leader, the company took on the responsibility to re-energize the hatchback segment at a time when this segment really needs a catalyst for growth. The fourth generation of Swift is equipped with a modern Z Series Engine and loaded with a host of new technological features that make the product high in safety, comfort, and convenience, and very friendly for the environment.
So far, the consumer acceptance for the new Swift is overwhelming. We are confident that the new Swift will bring excitement in the hatchback segment. In a constant endeavor to enhance customer convenience, the company keeps augmenting the sales and service network to reach closer to customers across the country. Recently, the company achieved a significant milestone of setting up over 3,000 Arena sales outlets and over 5,000 service touchpoints. The company is also accelerating its efforts to increase the share of sustainable and renewable energy across its operations. The company is using multiple sources of renewable energy, such as solar power and compressed biogas. The company's captive solar capacity stands at about 43.2 megawatts at peak as of financial year 2023-2024 and is targeting to scale it up to 78.2 megawatts peak by financial year 2024-2025.
The company has established a small biogas plant at Manesar, which started operating from June 2024. Given the local availability of biofuels, the company is very optimistic on the potential and the role of biofuels towards the decarbonization journey. The customer acceptance for CNG vehicles continues to increase, and in quarter one of this fiscal year, every one in three cars sold by the company in the domestic market was a CNG vehicle. Now, we come to the business performance in the first quarter, 2024-25. The company sold a total of 521,868 vehicles during the quarter, higher by 4.8% compared to the same period previous year. In the quarter, the sales in the domestic market stood at 451,308 units, up by 3.8% over that in quarter one, financial year 2024. The export sales were at 70,560 units, a growth of 11.6% over Q1 FY 2024.
In the domestic market, the demand for PVs was muted to some extent, largely due to the heat wave and elections, which kept many potential customers away from our showrooms. Recognizing this challenge, we enhanced our efforts to reach out to customers through various means. Additionally, we launched the new Epic Swift and also introduced the Dream Series to generate excitement and interest among potential buyers in the small car segment. We also increased the capacity for supply of Ertiga and the supply of CNG vehicles as a segment. To further get the attention of customers, we raised our discount offerings, making our products even more attractive. As a result, despite the less-than-ideal market conditions, we could achieve retail sales nearly at par with the previous quarter.
We also get a sense that there are indeed customers in the market but might be waiting for an auspicious period or a more attractive time or some reasons to make their purchase. We are further increasing our focus on improving retail sales. Going forward, a better monsoon season, coupled with the onset of the festive period, is where the industry is spending its hope. It may be noted so far that industry performance is broadly in line with the indication given at the start of the year. Going ahead, one should keep in mind the high base of the industry of the last year while assessing our growth expectations. On exports, the company continued to maintain a healthy growth in sales volume. The company gets nearly 40% share of India's total passenger vehicle exports in quarter one financial year 2025.
Coming to the financial results, during this first quarter, April to June financial year 2024-25, the company registered net sales of INR 338,753 million as against INR 308,452 million in quarter one of financial year 2023-24. The net profit for the quarter rose to INR 36,499 million from INR 24,851 million in quarter one 2024, a growth of 46.9%. This was broadly on account of cost reduction efforts, favorable commodity prices, and foreign exchange. Since investors look for a sequential comparison also, let me share. On a sequential basis, the raw material to net sales ratio has softened to the tune of 90 basis points. If you recall, we had a one-off adverse element in Q4. So in quarter one, out of the 90 basis points, improvement in the RM to net sales ratio, about 60 basis points, is contributed by reversal of this one-off element.
In addition, in Q1, there was some marginal benefit of commodities and forex, which was partially offset by increased discounts. The other factor for margin expansion is operating income. This comprises various incomes, such as scrap sales, extended warranty income from businesses, etc. There is some seasonality in this field, as we had seen in Q1 last year also. The operating income has contributed to margin expansion to the tune of 70 basis points. Besides, the manufacturing and admin expenses also contributed to margin expansion to the tune of 30 basis points. As the volume has sequentially reduced by 10.5%, there is a negative impact of operating leverage to the tune of 80 basis points. Employee cost usually increases in Q1 due to factors like wage increase and have some seasonality.
There was about 30 basis points increase in advertisement expense owing to the Swift launch and the T20 World Cup. So summing up this, it explains the increase in EBIT from 10.8% in quarter four financial year 2024 to 11.1% in quarter one financial year 2025. We are now ready to take your questions along with my colleague Arnab Roy, and your feedback and any other observations that you may have. Thank you.
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touch-tone telephone. If you wish to withdraw yourself from the question queue, you may press star and two. Participants are requested to please use handsets while asking a question. Ladies and gentlemen, we will now wait for a moment while the question queue assembles. The first question is from the line of Pramod Kumar from UBS. Please go ahead.
Yeah, thanks a lot for the opportunity. Congratulations on what appears to be a very good set of numbers operationally. Rahul Bharti, my first question is on the data point on discounts. Actually, where were the average discounts for the quarter, sir? Because you did say the discounting pressure has increased. What are the average discounts being incurred this quarter per vehicle?
We were about INR 21,700 approximately.
That compares to INR 14,500 discount what we had in 4Q . Is that right?
Correct.
Just help me understand this, the margin print what you have posted, because whatever you said, there is no one-off as such in terms of any lumpy item or any one-off gains as such. Where would be our operating utilization right now, sir? At what level are we operating in terms of capacity utilization at the plant level?
Capacity utilization, we are about around 85%.
So we are nowhere close to the kind of capacity utilization what some of our peers are operating. We have very high discounts in most of our categories, and we had operating leverage which is quite severe. So what I'm trying to understand is what is driving this kind of margin? Is it the CNG-led mix which is kind of aiding our margin of operability to an extent or the product mix itself within CNG, automatics, and other things? So if you can just help us understand the reason for this resilient margin, because as I see, employee expenses have also gone up meaningfully, even on a sequential basis, and other expenditures have not reduced meaningfully quarter on quarter despite the operating leverage. So what I'm trying to understand is that effectively with this kind of adverse environment, it's reporting this kind of profitability.
What should one expect if the operating environment gets better in terms of both demand, discounts, and new launches? Just trying to understand, are we looking at a much significant operating margin band for the company going forward?
Okay. I'll have to say, so I'll try to answer your question.
Yes, sir.
So I think if you see here, although as Rahul Bharti explained, we had a higher discount, that we had some favorable impacts also, as Rahul Bharti explained. We had a favorable impact on commodity. We had a favorable impact on forex. So there has been some favorability already in the result, which is factoring into this. So that's predominantly contributing, yes, and overall, there has been a prudence on cost, which also we highlighted some of the points. We had a good saving on power and fuel. We had some good saving in other operating costs. So all of that is contributing to this mixture.
How important is a mix of elements, sir?
Pramod, we mentioned that it depends on many, many factors, so we don't take too much into account. As a market leader, our effort is to cover every segment, every product, every powertrain, and cover the maximum. So we don't pay too much attention to the mix.
Fair enough. Sir, on the demand environment, if you can just help us understand what you did call out heat wave and other impacts, how do you see the demand from your vantage point currently, given the introduction of Dream Series, and how is the inquiry and other general walk-ins and all that kind of shaping up? And how should one expect the festive season to shape up? I understand the higher base, but sequentially, how should one read the demand trend from here on? And any signs of any green shoots or any bottoming out of demand in entry-level categories?
Okay. See, first of all, let me mention that India is at a very good level already. 42 lakh car sales in the domestic market last year globally compares very well. And India has a lot of potential also going forward. We have a long way to go. So along the way, if there is some lumpiness or there are some commas or full stops or semicolons, it does not matter much to us in the extreme short term. We are here for the long term. And in the beginning of the year, we had mentioned, as industry body SIAM had mentioned, that this year, the growth expectation is not very high. Now, that could be because of several reasons. It could be because we've grown up quite a bit in the recent past, so the market takes a breather.
It could be for several other reasons also, like elections or the heat wave, etc. But broadly, the fundamentals in India are intact. Of course, the short term is muted, and we all know that. But we are not worried about demand. We are more worried about being able to deliver what the market needs. That is more important. So we have to strengthen our entire chain, our vendors, etc. And demand will come sooner or later. I mean, we have to. And when you talk about granularity, so rural is doing better than urban. It continues to do. For us, rural has been doing better than urban for a long time now. But I hear that there are other segments like two-wheelers, like FMCG, which have suddenly shown some improvement.
In terms of small car segment, we did have to, as I mentioned in my opening thoughts, we launched an exciting new model like the Swift. We had some Dream Series limited edition that helps generate some excitement in the market and keeps bringing the customer back to the showrooms. So to that extent, we are trying to arrest the decline. But we think India has a long way to go.
Fair enough. Sir, I have more questions. I'll get back on the queue. Thanks a lot and best of luck.
Thank you. The next question is from Raghunandan NL from Nuvama Research. Please go ahead.
Thank you, sir, for the opportunity. Congratulations on strong margin performance. Sir, my first question was on the raw material cost. In opening comments, you indicated that RM QOQ basis or gross margin QOQ basis has improved by 90 basis points. Out of that, 60 was one-off. So remaining 30 would be largely from commodity and forex benefit. Would that be right understanding? And also, because recently non-ferrous, there was some increase. Do you see any commodity price increase happening for Q2?
Okay. I'll take the question. I'll have to say. So if you see, it's contributed by a few commodities. If you look at from a December quarter versus March quarter versus June quarter, steel has been favorable to the extent of about INR 2.5 per kg. And also, on the precious side, we had some favorable impacts. So both are contributing to the commodity.
Got it, sir. Going forward, do you see any negative impact?
It's a continuous moving thing. You have to keep monitoring. Very difficult to put a crystal ball and say whether it will change which way. But it's a continuous moving thing.
Thank you, sir. My second question was on the demand side. So number one, as you alluded in your comments, that rural is doing better. So are you seeing with improvement in rural, the share of first-time buyer, I think pre-COVID, it was 47%, 48%, and it had come down to about 40%-43% in FY 2024. Are you seeing this segment coming back? And how do you think that could positively support the hatchback demand, maybe by second half or next year? That is one part. Second, if you can also talk about recently in UP, there was that road tax rebate on hybrid. So has that been implemented? Are you expecting other states also to follow? Your thoughts on that. Thank you.
Okay. As far as the first-time buyer percentage is concerned, that remains fairly flat around the level you mentioned, between 40%-43%. So in UP, we have seen that the policy that they had announced in October 2022, it was not implemented because of some very operational reasons in the Vahan database. So that implementation has happened. And so customers are now getting the benefit of that thanks to the UP government on road tax waiver and on strong hybrids.
Got it, sir. And lastly, sir, if you can share the exports number for Q1, export revenue and royalty revenue, I mean, royalty percentage. And also, if you can talk about which regions you are seeing growth in exports.
Okay. Exports number for Q1 was 70,000. Export number was 70,560 numbers. And your second question, the royalty was about 3.5%.
I was referring to export revenue number, sir.
Okay. You want the value terms. Okay. Just a minute. So the export revenue was about.
You're looking at total or you're looking at total number?
Total.
Total number, sir.
4,481 crores.
Thank you. And your thoughts on which regions are doing well? Recently, also, we had an export month where number was more than 30,000 in a single month. Where are you seeing the growth, and how do you see the outlook? Would you retain that 300,000 kind of outlook for full year?
Yes. As of now, we believe that 300,000 is an achievable number for the full year. So the growth regions were Middle East and Latin America. They have shown good growth. And so now all three zones, Africa, Latin America, Middle East, are at a high. And the Jimny has become the largest exported model in Q1, followed by Dzire, Baleno, Fronx, and Grand Vitara. And fortunately, we are well diversified across about 100 countries. So we are fairly de-risked also.
Got it, sir. Thank you so much and wishing all the best.
Thank you.
Thank you. The next question is from Kapil Singh from Nomura. Please go ahead.
Hi, good evening, sir. Congratulations on the strong performance. Just one clarification before I ask the question. So this quarter's raw material to sale, does it include any element of reversal? Did I understand that correct? And what is the nature of that?
What I mentioned in the opening thoughts were, in the previous quarter, Q4, there was a one-time adverse element of 80 basis points. In this quarter, Q1, there was a reversal of within the 90 basis points improvement in raw material to net sales ratio. The element of reversal of that one time was 60 basis points.
Okay. So sustainable margin is one has to see one has to adjust for that 60 basis points. Is that the right way to look at it?
No, no. I mean, so the current level is what we are looking at, if nothing else changes for the future.
Okay. Okay. Perfect. That helps. So sir, one question was that we are seeing pretty healthy ASPs and margins also. Is there a thought process here that we redeploy some of these gains to drive a stronger volume growth, given that market conditions are looking tougher? And where are your inventory levels right now as well?
So there is no such thought at the moment. We'll have to look at the market closely. And it's not necessary that it's not an automatic phenomenon that you infuse something into the market. Plus, we don't know how long is the benefit of commodities. So it's too early to make any such assessment. And our inventory was at a fairly manageable level, slightly higher than optimal. So normally, we talk about, say, 30 days. If we go below 30 days of inventory, then there will be some variant, some color, which is not available for the customer. So 30 days, in any case, we should maintain. At quarter end, we were at about 37 days, which is fairly fine, I mean, manageability.
Sure. Second question was on hybrids. Just where the current taxation regime is in India, do you see hybrids as a technology being viable, and would you be investing in this technology for future products at current level of taxation?
Good question. So it's a very potent, powerful technology. It is nationally very beneficial because without the challenge of charging infrastructure, customers can widely adopt it. It is scalable, and it gives you a 35%-45% fuel efficiency improvement. It gives you a 25%-30% CO2 improvement. So both the national objectives of CO2 reduction and oil import reduction are strongly met by this. And it seeks to convert pure petrol diesel engine cars into hybrid cars. So it is a technology that we are quite positive about, optimistic about. And of course, along the line, I would believe all other stakeholders would also see the benefits.
Okay. What is the experience from UP market? Is there a significant increase in adoption after the change by the UP government?
I think too early to control.
Okay. Right, sir. Thanks. I'll come back in a few.
Thank you. Next, we have Binay Singh from Morgan Stanley. Please go ahead.
Hi team. Thanks for the opportunity. Three questions for me. First is, last year in Q1, you called out that there was this sort of retention payment that you had done. There was an 80 basis point one-off in staff. And we did see staff cost actually taper down in the following quarters. Any number you want to call out in this quarter on staff, which is specific to this quarter?
Yeah. I think it was not one element. I think there was a combination of this. Usually, if you see from a trend perspective, I would use a quarter when you have the wage increases and other things which come. So that's part of a normal trend which is coming in. Of course, there were some offsetting effect of what you just said. So that's one of the things which is coming in. And mainly the wage inflation part which has come in this quarter. So it's a net effect.
Okay. Last time, I think we called 80 basis point as one-off on retention-related payments and.
It was not 80 basis points. It was about the total was 80 basis points across several factors.
Okay. Okay. Okay. So a similar innovative trend will play out this year broadly. Hello, team?
Are you able to hear us?
No, we couldn't hear your response.
Okay. So as I was explaining, it's a combination of two things. So it was not 80 basis point. It was in the range of, I think, 20-25 basis point, which was there in terms of the numbers. So that is definitely, I mean, it's a one-off that we already pointed out. It has come back, which has got offset by the regular wage increase, which is there in the quarter. So what you see is a net impact of that, which is fairly, I would say, at a budget perspective, it's fairly at a similar level.
Right. And sir, secondly, just on the CAFE-3 norms, we do understand it's very stringent. Is there full clarity that they'll get implemented from April 2027? And secondly, if so, some of your peers are saying that they need to sell 20%-30% of portfolio as electric vehicles to meet those norms. What percentage will Maruti target to meet those norms?
At least on the date part, I think there's a fair amount of convergence that it should begin from 1st April 2027. What CAFE does is it allows you a portfolio of several technologies. Each one of them has their own CO2 footprint. The weighted average of that should be within a particular target. That target is itself determined by the weighted average curb mass of the car, of the fleet. So you need the whole portfolio weighted average has to be cleaner than the past. So people can adopt multiple paths. They can put more weightage on a particular technology. Each manufacturer will follow his own strategy, power train strategy, or CO2 strategy. So it's flexible.
So even the super credits, which I understand for EVs, PHEV, HEV is different and penalty. Is that finalized now that the 3-to-1 super credit and the penalty per vehicle if you don't meet the norms?
The penalty was enacted in the Energy Conservation Act. So that is already in hard print. The super credits, and there are some off-cycle CO2-reducing technologies, and there are some volume derogation factors which are under consideration by the policymakers.
Okay, team. Thanks, sir. I'll come back into Q.
Thank you.
Thank you. We have the next question from Amyn Pirani of J.P. Morgan. Please go ahead.
Yes. Hi. Thanks for the opportunity. Most of my questions have been answered, but basically, I just want to go back to the first-time buyer. Now, would it be fair to say that as the share of first-time buyers has come down, within first-time buyers, the salience of small cars has also come down because now we have a lot of micro SUVs and small SUVs which are also attracting a lot of first-time buyers? So can it provide some color as to, say, for a Fronx or a Brezza? Are you seeing an increasing number of first-time buyers which earlier used to come mainly for, say, the Alto or the Swift or the Baleno?
Sorry. Am I audible?
Yes.
There is some amount of upward shift of the first-time buyers, which is a healthy trend, but that cannot explain the entire decline in the small car segment. So while the first-time buyer percentage is fairly stagnant, as I mentioned, between 40 and 43, there is a marginal decline in small and compact cars also.
Okay. Okay. And could you just put a broad number, say, for the Fronx, first-time buyers, like 20% or 50%? I mean, any broad range is something that you can provide?
Not really. I mean, data does not exist in that granularity.
Okay. Okay. Okay. Secondly, so you have addressed a lot of SUV white spaces in the last two to three years. As every year goes by, new SUV categories or subcategories are also coming up. In the next 18-24 months, when we think of the launches that you may have, is the micro SUV category or, say, a Fronx below kind of a category something that you would look at, or is that something that you think that we should be looking at?
Two parts I'll give my answer in. One is, we don't generally comment on future product pipeline. But we've made a statement that by the end of the decade, we'll have 28 models from currently 18. So at least 10 more new models to be added, plus some existing ones would probably have some refreshment or some replacement. So more than 10, practically. It has to happen in the next six, seven years. So definitely, a lot of new models will be added. Now, we will go where the customer is. So wherever we find a sizable chunk, a segment in the market, we will be targeting that segment with a new product. So wherever the volume is, our product portfolio will match up.
Okay. Understood. Understood. Thanks for this. I'll come back into Q.
Thank you. Next, we have Gunjan Prithyani from Bank of America. Please go ahead.
Yeah. Hi. Thanks, team, for taking my questions. I had just a couple of follow-ups, very quick ones. One on the order book, if you can share where it stands and the mix that you usually give, how much of it is from CNG or RTG, if you can give those details.
So CNG is seeing a very good traction in the market. Today, one out of every three cars sold in India, sorry, sold by Maruti Suzuki, is CNG. The other very interesting trend is that in India, CNG has overtaken diesel for the first time in this quarter. There are many new geographies, states, which were contributing very less, but which have become quite active, which are growing at a very healthy rate: Rajasthan, Karnataka, Tamil Nadu, Madhya Pradesh, even Kerala, for example, Bihar, which have started coming up on CNG, both from a small base. So that's a positive. It's good for all because it avoids oil import, it reduces CO2, and it's economical for the customers also. It's not seen as a low-cost solution any longer. Very premium models have CNG. So that's a positive.
Okay. And that's good to hear. I'm just trying to see if there is a backlog to sort of think which we have serviced more in the quarter because the last time order book had quite high composition of CNG. So if you can share where order book stands and as a percentage of CNG for a full-year basis also, this is something which we can still continue with roughly around 33%-35% share of CNG for full-year basis.
So for the full year, we had given a kind of guidance of about 600,000. And in this quarter, I think we've done about 100,000; we've done slightly less than 150,000. So hopefully, we should be on track if nothing else goes on the gas price economics, etc. And we have also increased the supply of CNG vehicles and the production capacity of Ertiga because Ertiga had a high CNG percentage. So now these models are fairly accessible to customers.
Okay. Got it. That mixed tailwind should continue. Okay. My second question, Rahul, is on this sales to the OEM. That is certainly seeing a meaningful jump, right, from almost doubling with the number of models being shared with Toyota increasing. Is there a sort of broader thought process you can share with us? How should we think about growth or volumes in that category? Increasingly, the number is becoming significant, right? Any thought process on how we should think about volume targets here or growth here? And are there any models that you can share from here also which can potentially come under co-badging in fiscal 2025 or 2026? Whatever you can share for us to think through this.
Okay. So this is something that we'll have to play by ear and keep watching the volumes. Future products or co-badging, etc., are not in the plan. We'll announce when it comes to it. But the good part is it is incremental sales for us. So nothing better than choosing another channel to increase your sales.
Okay. Got it. Just last one. On the FX, you did call out there is an FX tailwind in this quarter with the reversal that we're seeing in yen now, yen appreciating. Is there something that we should keep in mind while thinking through the margin sustainability going ahead? Is there a large element that reverses or the FX is very, very marginal? Any thoughts there?
So depending on from where you are comparing, if you compare from the March quarter to June quarter, yes, there is improvement, but the improvement is not to that extent. There is some improvement. But if you see from a time like 2024 to Q1 2025, then the improvement is bigger from a year perspective. Going forward, I think you have already seen that there are some reversals which are already happening. So there will be some moderation. We will observe how the moderation happens. But yes, I mean, if you ask me at this point of time, I think there will be some moderation to you for sure, which is what the macro looks like.
Okay. Got it. Thank you so much.
Thank you. The next question is from Chandramouli Muthiah from Goldman Sachs. Please go ahead.
Hi. Good evening, and thank you for taking my questions. My first question is on the topic of SUVs. So if I just look at your mix, just adding utility vehicles and vans, FY19, it was about 25% of your domestic volumes. In 1Q FY24, it was about 36% of the domestic volumes. And 1Q FY25, it seems to be 45% of domestic volumes. So just trying to understand, I think for the full year FY24, close to 60% of domestic car volumes was utility vehicles plus vans. And as you plan your capacity and your model launches for the next five years of growth, just trying to understand if you're trying to target SUV mix to be beyond that 60% that the industry enjoys today in volume mix.
So our expectation is that this upward trend may continue for a while. And currently, nobody knows the future, but currently, the 50% may go up to, say, 55 or 60. And on top of that, there is, as you said, the MPVs. So even in our future product plans, we have to appropriately address this market segmentation. And one aspect that we have taken care of, as you rightly mentioned, in the next 5-6 years is we have made our production lines flexible so that any segment change, shift, we are able to be agile to the market.
Got it. That's helpful. My second question is a slightly more futuristic question. I think Suzuki is investing in a battery manufacturing plant in India. I think production there is potentially expected to start in CY 2026. So I just want to understand, initially, do we plan to first start with assembly of the battery packs, or do we think that we can start with cell manufacturing around that time frame? And just in addition to that, if you can shed some light on if there's any battery chemistry preference that the company has. At this point, most electric cars in India seem to be running on LFP technology, but Maruti has thought out of the box in the past. So just trying to understand what your sort of battery chemistry thinking is in-house at this stage.
Okay. The existing plant that we have, which manufactures cells locally, the TDSG plant, that uses LTO chemistry, lithium titanium oxide, and that is making cells locally basically for hybrid models. On the other Suzuki project, we'll just take a view from them what is the latest. But of course, it will not be ready to meet SOP. So we'll just check the Suzuki status also, what is the planned status, project status.
Got it. Thank you very much and all the best.
Thank you. The next question is from Vivek from JM Financial. Please go ahead.
Thank you for taking my question. So I have two questions. So we have talked about being technology agnostic. So without asking specifically on a single product, by when can we see a product portfolio of about two products on each of the technology types? That's my first question.
Feel free to open. I mean, I have not got your question, so kindly ask openly. Not a problem.
So basically, we have talked about CNG, hybrid, EVs to be part of our portfolio. So when we talk about all these technologies and say that we are technology agnostic, by when can we see about two products each on these technologies?
Why two products on each technology?
Yeah.
Good question. I can tell you that if you are asking about EV, for example, we will be displaying it in the motor show, the Auto Expo, or the Bharat Mobility Show in January 2025. And of course, we have total six EV models lined up all the way to 2031. And the second one is also close behind. So we are strongly on that. On strong hybrids, we already have two models, the Grand Vitara and the Invicto. On ethanol flex fuel vehicles, we have at the moment talked about one model, the Wagon R. Before we get into the second model, we'll have to look at how ethanol supply in the country pans out. But we'll be very positive, and we won't be found lacking for ethanol flex fuel vehicles. On CNG, we already have a number of models. And so that completes the portfolio as of now.
So effectively, let's say extending the first question, by FY27, probably we could have two models each on these technologies possibly.
I can't say. See, EVs, for example, we'll practically be launching one model every year, practically speaking. So on ethanol flex fuel, we'll have to watch the ethanol scenario in the country when we go to the next model from the first to the second.
All right. And my second question is, sir, what is our plan for volume expansion on hybrids? We believe that it's a very strong technology that will work well for the Indian market. But with or without the benefits from the government, what is our plan for volume expansion over there? That's all. Thank you.
It's a dynamic situation. We do not know what the government plan will be. There are so many policies. There are so many bodies, centers, states. So of course, our effort is to keep increasing. We'll see as we go.
Okay. Thank you, sir. All the best.
Thanks, Vivek.
Thank you. Ladies and gentlemen, that was the last question for today. With this, we conclude today's conference call. On behalf of Maruti Suzuki India Limited, that concludes this conference. Thank you for joining us. You may.