Maruti Suzuki, a prominent player in the Indian automotive sector, has achieved a significant milestone by becoming the eighth most valuable vehicle manufacturer globally. According to a recent report from ETIG, the company’s market capitalization has reached approximately $57.6 billion. Notably, Maruti Suzuki has not only surpassed its Japanese parent company, Suzuki, but has also outpaced automotive giants such as Ford, General Motors, and Volkswagen.
The implementation of GST 2.0, announced by Prime Minister Narendra Modi on Independence Day, has provided a boost to Maruti Suzuki’s shares. The new GST 2.0, which came into effect on September 22nd, has particularly increased sales of smaller cars. With over 60% of Maruti’s sales stemming from small and affordable cars, this change has proven to be a major game-changer for the company.
Maruti Suzuki’s shares have witnessed a remarkable surge of 25.5% since August. The share price, which stood at ₹12,936 on August 14th, rose to ₹16,318 by September 25th. This increase significantly exceeds the performance of the Nifty Auto Index, which recorded a gain of only 11% during the same period. Foreign Portfolio Investors (FPIs) have also increased their stakes in the Indian auto sector, with Maruti Suzuki emerging as a top choice.
Maruti Suzuki’s current valuation now exceeds that of Ford ($46.3 billion), General Motors ($57.1 billion), and Volkswagen ($55.7 billion). Furthermore, its value has doubled that of its parent company, Suzuki ($29 billion). However, globally, Tesla leads with a market cap of $1.47 trillion, followed by Toyota ($314 billion), BYD ($133 billion), Ferrari ($92.7 billion), BMW ($61.3 billion), and Mercedes-Benz ($59.8 billion).
Maruti Suzuki has maintained a strong position not only in exports but also in the domestic passenger car market. Its compact and entry-level cars constitute the largest portion of its total sales. The company reports receiving 15,000 bookings daily since the implementation of GST. On the first day of Navratri, the company delivered 30,000 vehicles, clearly demonstrating its popularity and demand.
