The Maruti Suzuki stocks hit a lifetime high on Thursday; the country’s biggest carmaker is expected to continue to notch up market share gains given the good response to new models.
The Maruti Suzuki stocks hit a lifetime high on Thursday; the country’s biggest carmaker is expected to continue to notch up market share gains given the good response to new models. The company has received bookings of more than 100,000 units for both Vitara Brezza and Baleno which have waiting periods of 6-9-months.
Analysts say Maruti will likely gain 300 basis points of market share over the next two years led by new launches and shift in industry demand towards petrol vehicles. With its models gaining in popularity, the company is expected to clock double-digit volume growth in the current financial year and margins are expected to expand given several of the new products are in the above six lakh or premium segment like the Baleno which is a premium hatchback and the Vitara Brezza, which is a compact SUV. Another two premium products from the company known as the Baleno RS and Ignis will hit the domestic market this festival season.
The Gurgaon-based company, known for its small cars, managed to sell more than one lakh units of premium products from its new range of premium dealerships — Nexa — in the first year of its existence. The company also ventured into the small commercial vehicle segment by launching its first product called Carry two days back.
Apart from the two manufacturing capacities in Manesar and Gurgaon, Maruti is expected to start its operations Gujarat plant by end of the current fiscal. In FY16 the company clocked its highest ever market share of 49% in the domestic market in 15 years. By 2020 Maruti Suzuki plans to sell two million vehicles in India. The company recently opened premium dealerships to shows its top-end models and plans to invest more in enhancing its reach.