The Indian automotive industry has seen remarkable growth, driven by increased demand, innovation, and favorable government policies. Leading companies like Tata Motors, Maruti Suzuki, and Mahindra & Mahindra have expanded their product portfolios to meet evolving consumer needs. With a focus on electric vehicles (EVs) and advanced features, Indian auto companies are well-positioned to capitalize on both domestic and global markets.
Future Potential and Rising Demand
The future of the Indian auto industry looks bright, fueled by rising disposable incomes and a growing middle class. Finance companies are playing a pivotal role by providing easier access to auto loans, thus fueling consumer demand. Additionally, there has been a surge in SUV sales, driven by changing preferences for space, comfort, and luxury in the Indian market. This increasing demand for SUVs, combined with innovation in electric mobility, presents significant growth opportunities for the industry.
Share Price
The shares of Maruti Suzuki have given a phenomenal return in the last 2 days by rising over 6%. As of January 02, 2025, the stock is trading at Rs. 11,518 up by 2.78% from its previous close of Rs. 11,208.
Rise in Production Volume
Maruti Suzuki has seen a significant increase in production volume across various segments in December 2024. The Mini and Compact sub-segments, which include popular models like the Alto, S-Presso, Baleno, and Swift, saw a sharp rise from 63,855 units in December 2023 to 77,524 units in December 2024.
The overall production of passenger vehicles rose to 155,553 units, up from 119,518 units last year, reflecting strong demand and a robust manufacturing output. This rise is driven by both existing models and the addition of new offerings, helping the company meet the growing needs of Indian consumers.
Pushing for Higher Market Share
Maruti Suzuki’s focus on strengthening its market presence is evident from its increased production of utility vehicles such as the Brezza, Ertiga, Fronx, and Jimny. In December 2024, the company produced 64,212 units of utility vehicles, a notable increase from 44,290 units in December 2023.
This push into the utility vehicle segment aligns with the growing consumer preference for SUVs and crossovers, which is expected to boost Maruti’s market share in this competitive space.
Expanding Vehicle Range and Market Footprint
The production of light commercial vehicles like the Super Carry also showed an upward trajectory, from 1,510 units in December 2023 to 2,101 units in December 2024. Maruti’s expansion into multiple segments, including passenger cars, utility vehicles, and commercial vehicles, strengthens its position in the Indian automobile market. With a diversified portfolio, the company is better equipped to capture a larger share of the market, catering to a wide range of consumer needs across segments.
Written By: Dipanghu Kundu
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