Maruti Suzuki has achieved a remarkable feat, becoming the world’s eighth most valuable vehicle manufacturer, showcasing the strength of the Indian automotive industry. With a market capitalization of approximately $57.6 billion, as reported by ETIG, the company has surpassed its Japanese parent, Suzuki, as well as other major automotive corporations like Ford, General Motors, and Volkswagen.
The recent introduction of GST 2.0, announced by Prime Minister Narendra Modi, has significantly benefited Maruti Suzuki. The implementation of the new GST measures on September 22nd has specifically driven up sales of smaller car models. As these cars make up a large portion of Maruti’s sales, the changes have been instrumental in fueling its growth.
Maruti Suzuki’s shares have shown substantial growth, with a 25.5% increase since August. The share price rose from ₹12,936 on August 14 to ₹16,318 by September 25. This growth outpaces the Nifty Auto Index. Foreign Portfolio Investors have also shown increased interest, with Maruti Suzuki becoming a popular choice.
Maruti Suzuki’s current valuation exceeds Ford, General Motors, and Volkswagen, and has doubled that of its parent company, Suzuki. While Tesla leads globally, Maruti Suzuki’s accomplishments position it favorably amongst major automotive brands. The company has made significant strides in the global market.
Beyond exports, Maruti Suzuki maintains a strong presence in the domestic passenger car market. Compact and entry-level vehicles drive a significant part of the company’s sales. Maruti Suzuki is receiving around 15,000 bookings daily since the GST implementation. The company’s delivery of 30,000 cars on the first day of Navratri highlights its significant market demand and popularity.