Maruti Suzuki India Ltd. (MSIL) is set to significantly broaden its business horizons, as its Board approved alterations to the Object Clause of its Memorandum of Association (MoA) during a meeting held on July 31, 2025.

These changes, which will be put to the shareholders for approval at the upcoming AGM scheduled for August 28, 2025, represent a strategic evolution that expands the company's focus well beyond traditional automobile manufacturing.

The revised MoA now explicitly includes the manufacturing of drones, unmanned aerial vehicles (UAVs), and unmanned aircraft systems (UAS), along with advanced technologies related to propulsion and control systems.

This extension leverages Maruti Suzuki's engineering, manufacturing, and R&D capabilities to enter the growing markets of industrial, commercial, agricultural, defence, and logistics drone applications.

Additionally, MSIL will venture into a variety of emerging mobility services. These include vehicle leasing, subscription-based models, shared mobility, and used car sales refurbishment and certification across digital, physical, or hybrid platforms. This move strengthens Maruti Suzuki’s presence in the evolving mobility ecosystem and the high-potential pre-owned vehicle segment.

Maruti Suzuki is also preparing to deepen involvement in electric mobility and sustainable technologies. The expanded mandate permits the company to develop and operate EV charging infrastructure, battery swapping stations, and engage in the production and trading of alternative fuels such as compressed biogas and hydrogen.

Furthermore, the company will enter the carbon trading space, including carbon credit monetisation and renewable energy certificate trading, aligning with environmental, social, and governance (ESG) principles.

The company intends to offer consulting, research and development (R&D), logistics, supply chain services, and facilities for vehicle testing and certification. It also plans to pursue end-of-life vehicle recycling and automotive scrap processing, covering diverse materials like metals, plastics, rubber, and e-waste, hence adopting a circular economy approach.

This move reflects Maruti Suzuki’s recognition of shifting market dynamics, heightened competition, and its commitment to positioning itself as a comprehensive mobility solutions provider poised for long-term growth in an industry undergoing rapid transformation.

With a current domestic passenger vehicle market share around 40% (down from about 50%), this diversification strategy aims to capture growth opportunities, enhance customer offerings, and maintain competitive edge in emerging sectors related to mobility and sustainability.

These strategic MoA changes enable Maruti Suzuki to expand and diversify into new-age technologies and services, reinforcing its leadership while adapting to evolving industry and consumer demands.

Based On ET News Report