Maruti Suzuki India Limited (MSIL), the country’s leading automobile manufacturer, has witnessed a significant rise in its share prices over the past two days. This upward trend is attributed to robust sales figures reported for December 2024 and optimistic management commentary regarding future prospects.
Key Highlights
- Share Performance:
- On January 2, 2025, Maruti Suzuki’s shares rose by 3.1%, reaching an intraday high of ₹11,570.9 on the Bombay Stock Exchange (BSE). This marks a cumulative gain of over 6% in just two days.
- On January 2, 2025, Maruti Suzuki’s shares rose by 3.1%, reaching an intraday high of ₹11,570.9 on the Bombay Stock Exchange (BSE). This marks a cumulative gain of over 6% in just two days.
- December 2024 Sales Performance:
- Total Sales: Increased by 29.5% year-on-year (YoY) to 178,248 units, up from 137,551 units in December 2023.
- Domestic Passenger Vehicle (PV) Sales: Grew by 24% to 130,117 units compared to 104,778 units in the same period last year.
- Exports: Surged by 39% to 37,419 units from 26,884 units in December 2023.
- Production Volumes:
- Total production, including passenger and light commercial vehicles, rose by 30.25% YoY to 157,654 units in December 2024.
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Management Insights
Partho Banerjee, Senior Executive Officer – Marketing & Sales at MSIL, highlighted several factors contributing to the company’s strong performance:
- Dealer Inventory: Currently, dealer stock is sufficient for only nine days, indicating strong retail demand.
- Pending Bookings: Over 200,000 bookings are pending across various product segments, reflecting sustained consumer interest.
- Electric Vehicle (EV) Plans: Maruti Suzuki is set to unveil its comprehensive EV ecosystem at the upcoming Bharat Mobility Global Expo, signalling its commitment to future mobility solutions.
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Market Outlook
The recent surge in Maruti Suzuki’s share price is not only a reflection of its strong sales performance but also indicative of positive investor sentiment towards the company’s strategic initiatives. Global brokerage firm Citi has maintained a ‘Buy’ rating on Maruti Suzuki, setting a target price of ₹13,500 per share, suggesting confidence in the company’s growth trajectory.
Industry Context
The Indian automobile sector has been experiencing a rebound, with the Nifty Auto index rising by 2% following the release of December sales figures. Maruti Suzuki, being a market leader, has played a pivotal role in this sectoral uptrend.
Maruti Suzuki’s impressive sales growth, coupled with strategic initiatives in the EV segment and strong market demand, positions the company favourably for sustained growth. Investors and market analysts will be closely monitoring the company’s performance in the coming quarters, especially in light of its ambitious plans to maintain market leadership in an evolving automotive landscape.
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