Why Maruti Suzuki Share Price is Rising

The Indian auto industry is experiencing a resurgence, driven by strong demand for passenger vehicles, increased focus on electric mobility, and favourable government policies.

After a period of supply chain disruptions, the sector is now on the road to recovery, with many automakers reporting improved sales and production figures.

This growth is supported by rising disposable incomes and a shift in consumer preferences towards personal vehicles.

Speaking of the Indian auto industry, Maruti Suzuki, India's largest car manufacturer, has long been a dominant player in the Indian auto market.

Known for its affordable and reliable cars, the company has maintained a leading market share, catering to a wide range of customers from entry-level buyers to those seeking premium models.

Lately, driven by a bag of positive factors, the company's share price is on an upward trajectory.

In the past month, Maruti Suzuki's share price has rallied by 9.1%.

Let's explore the factors driving Maruti Suzuki share price.

Latest CNG Launch

Earlier this month Maruti Suzuki introduced the S-CNG variant of its Epic New Swift, marking another milestone in its expansion of fuel-efficient vehicles.

This latest model comes after the successful launch of the petrol-powered Epic New Swift in May 2024, which garnered strong sales.

The Swift S-CNG, now available in three variants-V, V(O), and Z-offers an impressive fuel efficiency of 32.9 km/kg, making it the most fuel-efficient hatchback in its segment.

The launch of the Swift S-CNG is expected to attract buyers looking for economical and environmentally friendly driving options.

Maruti Suzuki already leads the market with its wide range of S-CNG models, and this latest addition strengthens its portfolio further.

Since CNG vehicles are in high demand due to rising fuel costs, this launch plays a crucial role in the company's strategy to capitalise on the shift towards green mobility.

With over 67,000 units of the petrol Epic New Swift sold since its launch, Maruti Suzuki has proven its strong market presence.

The introduction of the S-CNG variant, which complements the earlier petrol model, is boosting investor confidence in the company's ability to meet diverse consumer needs.

This confidence has reflected in the company's share price, which has rallied 9.1% in the past month, driven by the anticipation of increased demand for the new S-CNG model and the company's continued focus on green technologies.

The launch of the Swift S-CNG is seen as a significant step in Maruti Suzuki's growth, as it aims to capture a larger share of the CNG vehicle market, further lifting its share price.

What Next?

Maruti Suzuki has ambitious growth plans for the future. The company is focusing heavily on expanding its production capacity.

It recently commissioned a new assembly line, increasing the Manesar facility's capacity to 900,000 units annually. This increase in production will help Maruti meet the growing demand for its vehicles.

The company is also targeting sustainability with its use of renewable energy. Maruti plans to increase its solar power capacity to 78.2 MWp by FY25.

It is also optimistic about biofuels and has started operating a biogas plant at its Manesar facility, furthering its commitment to decarbonisation.

Looking ahead, the demand for CNG vehicles continues to rise. One out of every three cars sold by the company in India is a CNG model. This growing demand positions Maruti Suzuki to capture a significant share of the market for fuel-efficient and eco-friendly vehicles.

Exports are also a key focus for the company, with Maruti maintaining a strong presence internationally. In Q1 FY25, the company captured 40% of India's total passenger vehicle exports.

Maruti Suzuki aims to continue growing its sales and service network across the country. This will enhance its reach and improve customer convenience.

With the festive season approaching and potential improvement in the monsoon, the company expects domestic demand to rise, further boosting its retail sales.

How Maruti Suzuki Share Price has Performed Recently

In the past five days, Maruti Suzuki share price has rallied 7.3%. In the last month, it has surged 9.1%.

The stock price has rallied 29.9% in the 2024. Additionally, it has surged 26.5% in the last year.

The stock touched its 52-week high of Rs 13,675 on 1 August 2024 and a 52-week low of Rs 9,738.4 on 18 January 2023.

About Maruti Suzuki

Maruti Suzuki is a subsidiary of Japan's Suzuki Motor Corporation. It is India's largest passenger vehicle company.

It primarily manufactures passenger and commercial vehicles in India.

However, the company also offers spare parts and accessories, vehicle financing, and insurance through its subsidiaries.

To know more, check out Maruti Suzuki's factsheet for a detailed analysis.

You can also compare Maruti with its peers.

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Maruti Suzuki vs Hindustan Motors

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