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Maruti Suzuki to improve market share with multiple new product launches in 2022

Maruti Suzuki, India’s largest passenger vehicle manufacturer, is set to take over the market share in 2022 with multiple new product launches.

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Maruti Suzuki to improve market share with multiple new product launches in 2022

Maruti Suzuki, India’s largest passenger vehicle manufacturer, is set to take over the market share in 2022 with multiple new product launches. This will definitely help the company’s operating profit margins recover due to increase in vehicle prices.




The carmaker witnessed a swift recovery in volumes after the unlocking of the economy in FY21 due to better-than-expected economic recovery and shift towards personal mobility.

Analysts at Motilal Oswal Institutional Equities observed that MSIL stock underperformed (27% vs. Nifty and 23% vs. NSE Auto Index) in the last six months, which was impacted by market share loss and pressure on margin, despite a strong volume recovery. “We see both these concerns abating as a product life cycle improves and price increase/discount moderation drives a recovery in profitability. We expect 30% volume growth in FY22E and positive evolution of margin.”

They highlighted that FY22 looks far more promising for MSIL, with several launches lined up for the next two years, with a mixture of full upgrades of existing models – Alto, Celerio, Brezza, Ciaz and Baleno, as well as new model launches – Jimmy, Grand Vitara and mid-sized MUVs. “These launches are focused on SUVs (all new models and Brezza), but would also address its key entry-level model Alto after a gap of 10 years,” the analysts said.

Furthermore, they attributed the market share loss for Maruti, from 48.1% in FY21 to 51.2% in FY19, to the lack of new product launches, especially in the fast-growing compact sports utility vehicle segment. Moreover, exponential rise in COVID-19 infections across the country though could derail the recovery in volumes and financials for Maruti and overall industry during the June quarter.


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As such, the carmaker announced, on Friday, its decision to increase price of its vehicles by around 1.6% on an average, across its product portfolio, as a result of sustained increased in input cost. Maruti Suzuki had increased prices of its offerings in January and the management had guided for another round of price increase if the input cost keeps rising.


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  1. Pingback: GM India lays off over 1,000 workers at Talegaon plant: Report | The Plunge Daily

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