Shares of Maruti Suzuki India Ltd surged impressively in Thursday's trading session, rising over 4% to hit an intraday high of Rs 11,675 on the Bombay Stock Exchange (BSE). By 12:04 pm, the stock was still trading 4.01% higher at Rs 11,671.55, bringing its market capitalization to Rs 3.67 lakh crore. This notable rally comes as a result of the company’s solid sales performance in recent months and strong investor confidence, marking a substantial climb of over 6% in the past two days alone. The positive market sentiment is largely fueled by strong demand for the company’s models and its leadership in the Indian automotive market.
For Maruti Suzuki, December 2024 was a month of impressive growth, with overall sales rising 29.5% year-on-year (YoY) to a total of 1,78,248 units. In December 2023, the company had sold 1,37,551 units, so this increase represents a significant jump in sales. Specifically, sales in the passenger vehicle (PV) segment surged by 28.6%, reaching 62,788 units compared to 48,787 units during the same period last year. This growth is further reflected in domestic PV sales, which saw an even more robust 24% rise, with 1,30,117 units sold, compared to 1,04,778 units in December 2023.
The company also reported a significant 30.15% YoY increase in its total production for December, which reached 1,55,553 units, including both passenger and light commercial vehicles. This production ramp-up was crucial in meeting the growing consumer demand. Additionally, Maruti Suzuki posted a solid 10% YoY increase in total sales in November 2024, with a total of 1,81,531 units sold, further indicating the company’s strong performance in the latter part of the year.
While Maruti Suzuki's overall performance remains robust, there were some variations in performance across its different vehicle segments. The mini-segment, which includes models like the Alto and S-Presso, saw sales of 9,750 units in November 2024, which was slightly lower than the 9,959 units sold in November 2023. Similarly, compact car sales, comprising popular models like the Baleno, Swift, and WagonR, showed a decline, with 61,373 units sold in November 2024, compared to 64,679 units in the same month the previous year. These declines in specific segments did not overshadow the overall positive sales results for the company, and it continues to maintain its dominant position in the Indian automobile industry.
Despite the mixed performance in certain vehicle categories, Maruti Suzuki remains a market leader in India, with its broad portfolio and strong brand recognition. Citi, a global brokerage firm, continues to back Maruti Suzuki, maintaining a "Buy" rating for the company, with a target price of Rs 13,500 per share. This endorsement reflects continued confidence in Maruti Suzuki’s ability to maintain its growth trajectory and market dominance in the long term.
In fact, Maruti Suzuki’s shares have delivered a strong performance over the past year, gaining 10% in value. This growth has outpaced the Sensex, which rose by 9.2% during the same period. Investors are optimistic about the company’s ability to navigate market challenges and capitalize on the increasing demand for passenger vehicles in India, particularly in the growing middle-class segment.
Maruti Suzuki’s success can be attributed to its ability to cater to a wide range of consumer needs, offering everything from budget-friendly models in the mini and compact car segments to more premium vehicles in the higher-end categories. The company’s extensive dealer network, after-sales service, and brand reputation also contribute to its sustained leadership in the market. Additionally, the automaker’s focus on innovation, quality control, and adapting to evolving consumer preferences has helped it maintain a strong presence in the competitive automotive landscape. With a solid sales pipeline and ongoing investment in product development, Maruti Suzuki is well-positioned to continue leading the Indian automobile industry for years to come.
