Capital expenditures (CapEx) are vital in the automotive industry for investing in new technologies, expanding production capacity, and maintaining competitiveness. They also drive industry growth by localizing production and creating jobs, ultimately supporting innovation and meeting consumer demand.
Here is a list of 3 automobile stocks with huge capex plans for FY25.
Maruti Suzuki Ltd.
Maruti Suzuki India Limited serves as the Indian subsidiary of the Japanese automaker Suzuki Motor Corporation, primarily engaged in the manufacturing, purchasing, and selling of motor vehicles, components, and spare parts.
Maruti Suzuki India has allocated Rs.10,000 crore for capital expenditure this financial year, focusing on various initiatives such as new product launches and expanding production capacity.
According to Rahul Bharti, Head of Corporate Affairs and Chief Investor Relations Officer at Maruti Suzuki, the majority of the company’s planned capital expenditure will be directed towards the first production line of its upcoming greenfield plant in Kharkoda, Haryana. The new facility, set to commence operations by 2025, will have an initial annual production capacity of 2,50,000 vehicles.
For the quarter ended June 2024, Maruti Suzuki Ltd reported revenue from operations of Rs.35,779 crore and net profits of Rs.3,760 crore. Year-on-year, this reflects a revenue increase of 10 percent and a profit rise of 48 percent respectively. In Friday’s trading session, the company’s share price opened at Rs.12,449.65 per share, 2 percent higher than its previous close.
Tata Motors Ltd.
Tata Motors Limited is a leading global automobile manufacturer that offers a diverse portfolio spanning cars, sports utility vehicles, trucks, buses, and defense vehicles. The company operates in two main segments: automotive operations and other operations.
The Mumbai-based automotive giant is set to invest Rs.43,000 crore in products and technologies in 2024-25, surpassing last year’s allocation of Rs.41,200 crore. A significant portion of this investment, approximately Rs.35,000 crore, will be directed towards its British subsidiary, Jaguar Land Rover, which received around Rs.33,000 crore in the previous fiscal year, while Tata Motors allocated about Rs.8,000 crore.
For the quarter ended 2024, Tata Motors Limited reported revenue from operations of Rs.1,08,048 crore and net profits of Rs.5,692 crore. Year-on-year, this reflects a revenue increase of 5.6 percent and a profit rise of 72.4 percent respectively. In Friday’s trading session, the company’s share price opened at Rs.1,066.85 per share, 2.5 percent higher than its previous close.
Mahindra and Mahindra Ltd.
Mahindra & Mahindra Ltd, a pivotal entity within the Mahindra Group conglomerate, stands out as a leading manufacturer of sport utility vehicles, trucks, and agricultural tractors. The company is actively engaged in both domestic and international markets.
To drive its growth, Mahindra & Mahindra has established a robust product pipeline that includes internal combustion engine (ICE) models and electric vehicles (EVs). The company plans to invest Rs.37,000 crore over the next three years, aiming to expand its production capacity to 72,000 monthly units by the end of FY26.
By 2030, Mahindra intends to launch nine ICE SUVs, seven battery-electric vehicles (BEVs), and seven light commercial vehicles (LCVs), positioning itself as a formidable player in the evolving automotive landscape.
For the quarter ended June 2024, Mahindra & Mahindra Ltd reported revenue from operations of Rs.37,218 crore and net profits of Rs.3,546 crore. Year-on-year, this reflects a revenue increase of 10 percent and a profit decline of 3.7 percent respectively. In Friday’s trading session, the company’s share price opened at Rs.2,739.45 per share, 2 percent higher than its previous close.
Written by – Siddesh S Raskar
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