Latest news with #e-Vitara
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Business Standard
10 hours ago
- Automotive
- Business Standard
Maruti launches flexible EMI plan to upgrade small cars to Grand Vitara
Maruti Suzuki India (MSIL) is planning to launch a financial scheme aimed at making SUV ownership more accessible for entry-level car owners--including Alto, WagonR or similar segment buyers. Under this initiative, customers who own a small car of any brand, can purchase the Grand Vitara sport utility vehicle (SUV) through an EMI plan. The scheme, which will be piloted in Delhi-NCR, Mumbai, and Bengaluru, allows customers to buy the Grand Vitara at a monthly instalment of nearly ₹9,999, which is nearly 20 per cent lower than standard EMIs available in the market, the company said. 'Our target is people who already own a small car and are ready to move want to make that upgrade easy and accessible,' said Partho Banerjee, senior executive officer, sales & marketing, MSIL, in an interview with Business Standard. According to the plan, the customer's existing car will be treated as the down payment and its valuation will vary based on factors such as age, ownership history, and mileage. Customers will also be eligible for an exchange bonus. The remaining cost will be financed and paid back over a five-year tenure. One of the key features of the scheme is the guaranteed buyback option. After five years or 75,000 km of usage, customers will have the option to return the vehicle at an assured value of 50 per cent of the original ex-showroom price. Alternatively, they can retain the car by paying the remaining balance. 'This is a flexible and low-risk option for customers. It gives them a sense of assurance and helps ease the financial burden of moving into a more premium vehicle,' Banerjee said. This is the first time a mass market car manufacturer has launched such an EMI upgrade scheme. The offer is valid across all variants of the Grand Vitara SUV, with EMI amounts varying depending on the model selected. Banerjee added that the company will monitor the response in the three pilot cities. 'If the model works well, we'll expand it to other cities and extend it to more models -- especially our upcoming e-Vitara,' he said. Global premium automakers have long offered trade-in and flexible finance options to make high-end models more accessible. Mercedes-Benz, for example, offers a 'guaranteed future value' plan that bundles easy EMIs with assured returns on trade-ins. These initiatives have helped luxury brands attract younger professionals, a strategy Maruti now seems to be adapting for the mass-market SUV buyer. The timing of Maruti's scheme also coincides with a prolonged slump in India's small-car segment. Maruti Chairman RC Bhargava has previously flagged this trend as a concern, warning that a continued drop in naturally affordable small cars could hamper overall market growth. With vehicle prices steadily rising across segments and financing costs remaining a concern for many middle-income households, the company believes this initiative could tap into a large, underserved segment of aspiring SUV buyers. 'This kind of scheme gives them affordability, flexibility, and a clear exit path — all rolled into one,' Banerjee noted.
Time of India
12-05-2025
- Automotive
- Time of India
Maruti Suzuki set to outpace industry growth in FY26 as parent firm bets big on India with 50% of global capex
Japanese auto giant Suzuki Motor Corporation (SMC) has projected a modest 1–2per cent growth in India's passenger vehicle (PV) wholesale market for FY2025–26 but expects its Indian arm, Maruti Suzuki , to outpace industry growth, driven by a pipeline of new launches and aggressive capacity expansion. Despite ongoing weakness in compact car demand, the company remains bullish on the Indian market, primarily due to the sustained demand for SUVs. In an investor presentation released Monday, SMC stated 'Although SUVs continue to be strong in the market, demand for compact cars continues to be sluggish, and the overall market for wholesale sales is expected to grow by (around) 1 to 2 per cent.' SMC plans to launch two new SUVs in FY26 — including its first battery electric vehicle (BEV), the e-Vitara — a move expected to give Maruti Suzuki an edge and help it grow faster than the overall market, as news agency PTI reported. To support this push, the company has allocated a capital expenditure of 380 billion yen for the fiscal year, with India accounting for nearly 50per cent of this investment. The capex will primarily be used to expand automobile production capacity. Maruti Suzuki's new manufacturing facility in Kharkhoda, Haryana, which started production in February 2024, will play a key role in ramping up output — particularly for high-demand models like the Brezza SUV. Earlier in March, Maruti's board had approved Rs 7,410 crore to set up a third plant at the Kharkhoda site, with a proposed annual capacity of 2.5 lakh vehicles. On the export front, Suzuki reported a significant increase of 50,000 units in FY2024–25, bringing total export volume to 3.33 lakh units, aided by market expansion in Africa and other global regions. Looking ahead, the company aims to solidify India's role as a global hub for BEV production and exports, contributing to the Indian government's 'Make in India' initiative. The e-Vitara, Suzuki's first electric model, is set for a global rollout in summer 2025, with initial sales in India, Europe, Japan, and other markets.
Mint
07-05-2025
- Automotive
- Mint
Prediction: Maruti stock will beat the market. Here's why.
Maruti Suzuki, a stock that's trailed the broader market over the past year, may finally be ready to overtake the competition. After encountering margin hiccups, sluggish hatchback demand and a delayed electric vehicle (EV) rollout , the country's largest carmaker is set to benefit from several tailwinds. The Q4FY25 results revealed why Maruti could be gearing up for outperformance . Net sales grew 5.9% year-on-year to ₹ 38,800 crore, driven by a 3.5% rise in volume to 604,635 units. While not a blowout, the results marked a clear stabilisation, with exports rising and SUV momentum remaining strong. Also read: Five stocks that could deliver big over the next five years Operating profit fell 14.2% year-on-year owing to higher costs from new plant expenses, advertising around the e-Vitara launch, and manufacturing overheads. But this margin pressure appears to be temporary. Importantly, profit after tax (PAT) came in at ₹ 3,710 crore, down just 4.3% year-on-year, suggesting that higher non-operating income helped offset the margin squeeze. But before we delve into the triggers, let's break down the business. The business operates across key segments: 1. Passenger vehicles (PV): Maruti's core segment, which includes hatchbacks, sedans and SUVs, contributes nearly 85% of total volumes. CNG, a growing sub-segment within PVs, contributes about 33% of domestic sales. 2. Light commercial vehicles (LCV): These account for about 2% of volumes. 3. Exports: These now make up around 12-13% of total volume. Going forward,Maruti's strategy hinges on three growth vectors within the PV segment: scaling up its SUV portfolio, deepening its CNG dominance, and executing a high-stakes EV plan. SUVs accounted for 27.8% of Maruti's PV volumes in Q4FY25, up from 25.5% a year ago, with models such as Brezza, Fronx, and Grand Vitara cementing Maruti's transition. Notably, the average selling price rose 2.8% year-on-year owing to a richer product mix. Dzire and Grand Vitara have been standout performers, with Dzire crossing the three-million-unit production milestone and the Grand Vitara quickly gaining traction in the premium SUV segment. This move up the value chain is gradually redefining Maruti's image from that of a budget carmaker to a well-rounded auto giant. EV ambition : Electric vehicles are the company's most exciting pivot. The e-Vitara, Maruti's first electric SUV, boasts a 500-km range and cutting-edge features. Production is slated to begin in H1FY26, with a sales target of 70,000 units in the first year, a large portion of which will be exports. Maruti is supporting EV adoption by rolling out 1,500 EV-ready service workshops across 1,000 cities and afast-charging network in India's top 100 cities and towns. This is a key step to address range anxiety and build trust in the brand. However, when it comes to the economics of EVs, management has been clear: EVs will remain structurally less profitable than ICE vehicles, with margins currently 3-5% lower. While the company is working to localise key components and benefit from global economies of scale, it admits EV profitability is unlikely to match that of ICE vehicles in the near term. The company is instead focusing on building credibility, market share and scale, building the foundation for improved margins over the next three to five years. Also read | Growth vs value stocks: Best investment strategy for 2025? Fresh capacity: The Kharkhoda plant, which began operations in Q4, has increased Maruti's capacity by 10%. The plant is designed to produce a mix of ICE vehicles, SUVs and, crucially, the new e-Vitara electric SUV for both domestic and export markets. CNG resilience : One in every three cars sold domestically in Q3FY25 was CNG-powered, a testament to Maruti's wide moat in this segment. Fuel-price dynamics favour CNG and Maruti holds the lion's share of the market. This provides a cushion to both the topline and margin. Export leadership : The company commands a near-50% share of India's passenger vehicle exports, with Q3FY25 exports hitting a record 99,220 units—a 38% jump over the previous year. Its strategy to make India a hub for global EV exports further enhances its long-term growth narrative. For FY26, Maruti expects export volumes to grow 20% year-on-year, supported by a ramp-up of EV exports. Maruti's financial track record confirms the strength of the franchise. In FY25, net sales rose 7.5% to ₹ 1.45 trillion, while operating earnings before interest and taxes (EBIT) shot up 9.3% to ₹ 14,600 crore. PAT rose 5.6% despite cost overhangs. Maruti's balance sheet also remains healthy despite sectoral ups and downs. The company clocked a revenue CAGR around 14.1% between FY20 and FY25, and a net profit CAGR around 20.6%. Returns have also been strong, with the return on equity and return on capital employed averaging 12.3% and 15.9%, respectively, over the same period. Maruti has guided for ₹ 8,000-9,000 crore of capex for FY26, after ₹ 840 crore in FY25. This reflects continued investment in production capacity and EV readiness. Apart from the Kharkhoda plant, the company is also monitoring its eligibility for the government's production-linked incentive (PLI) scheme once production starts, while maintaining strong localisation. This includes 85-90% of steel sourced locally and work on reducing its rare-earth dependency in EVs. Two launches are planned in FY26: the e-Vitara and a new SUV, reinforcing Maruti's strategy to broaden its premium offering. It plans to expand its product line-up to 28 models by 2030. Export volumes are expected to rise at least 20% in FY26, building on strong performance in FY25, when 332,000 units were exported. A big part of this will come from the e-Vitara EV, which targets 70,000 units in FY26, with a significant portion earmarked for international markets. However, the company remains cautious on small car-demand, which continues to stagnate. It is closely watching potential consumption catalysts such as upcoming pay commissions. While the domestic passenger vehicle industry is expected to grow just 1-2% in FY26, Maruti aims to outperform through its growing SUV lineup and aggressive exports push. Maruti's toughest battlefield is the global market. By rolling out its first electric SUV, the e-Vitara, the company is taking on global automotive heavyweights such as Toyota and Hyundai, and Chinese EV giants such as BYD. Global OEMs have advantages such as scale, integrated supply chains and massive R&D budgets. China's EV ecosystem, in particular, is tough to rival owing to cost advantages and state-backed incentives. Maruti's challenge is to differentiate itself through smart execution. Backed by cost efficiency, a strong service network, and Suzuki's global support, the company aims to quickly build scale and compete on both price and reliability. Maruti stock has delivered mixed results over various timeframes. Over the past five years, it has compounded at a modest CAGR, reflecting the cyclical nature of the auto sector and the impact of regulatory shifts and covid-era disruptions. Over the past year, the stock has seen increased volatility, with sharp recoveries offset by phases of underperformance. A large part of this is due to EV transition anxieties and growing competition. The stock is down 3% over the past year. Also read: These five stocks are proof that value investing is far from dead Despite this, Maruti has broadly kept pace with key auto indices. The stock currently trades atprice-to-earnings ratio of 26.9, a 27% discount to its long-term median PE. Maruti could be well-placed for a re-rating, given the strong projected volume growth, EPS expansion, and export volumes that are likely to jump 20% in FY26. Risks such as raw-material cost inflation, intense competition and muted hatchback growth persist, but Maruti's strong fundamentals and diversified strategy provide a cushion. The auto major has been the undisputed champion of India's middle class and a household name, having brought affordable cars to millions. But the market has shifted. Small-car demand is slowing and Maruti knows it can't rely on its old playbook anymore. SUVs now dominate its roadmap, EVs are finally taking centerstage with the e-Vitara, and exports are set to play a much bigger role in driving growth. If FY25 was a year of stabilisation, with mid-single-digit volume and revenue growth, FY26 and beyond are shaping up for stronger momentum. Operating leverage from new capacity and a richer product mix should help keep margins resilient even as initial EV investments weigh slightly. Moreover, with exports and premium models expected to contribute a larger share of business, Maruti's earnings trajectory looks poised to outpace the modest of FY25. Also read: Keep these three smallcaps on your watchlist But all of this is not without its risks. While thecompany's focus on premiumisation, localisation and scaling its EV game is the right strategy, execution is critical. The e-Vitara is a big step forward, but the real question is whether Maruti can convert its EV ambitions into sustainable profits. For now, the company is moving in the right direction. But investors should watch it closely as the next 12-18 months will be key to proving whether Maruti's pivot can truly deliver. Happy investing! Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. This article is syndicated from
Time of India
01-05-2025
- Automotive
- Time of India
Maruti Suzuki's top boss explains why small cars that revolutionised Japan market is needed in India amid SUV craze
R C Bhargava, Chairman of Maruti Suzuki , India's leading car manufacturer, has proposed the introduction of a new category of compact cars aimed at bridging the price gap between two-wheelers and entry-level cars to help revive the market. #Pahalgam Terrorist Attack Nuclear Power! How India and Pakistan's arsenals stack up Does America have a plan to capture Pakistan's nuclear weapons? Airspace blockade: India plots a flight path to skip Pakistan Inspired by Japan's Kei car model, which transformed urban mobility from the 1950s, these smaller, city-focused vehicles would be designed with affordability in mind. Bhargava suggests that lower taxes and relaxed compliance norms for this category could significantly reduce costs, making it easier for two-wheeler owners to upgrade to four-wheelers, reported Forbes. 'What should be done for this segment? We have not handled the problem of two-wheeler owners. Putting six airbags in cars does not help them. That makes it more difficult for two-wheeler owners to buy cars by making cars more expensive," said Bhargava in an interview with Forbes. 5 5 Next Stay Playback speed 1x Normal Back 0.25x 0.5x 1x Normal 1.5x 2x 5 5 / Skip Ads by by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Moose Approaches Girl At Bus Stop In Bac Giang - Watch What Happens Happy in Shape Reason behind Maruti Suzuki chairman's small car need Japan offered a compelling solution to affordable mobility as far back as the 1950s. In a country recovering from war, grappling with poverty, and facing shortages of steel and fuel, the government introduced the Kei car category in 1949. Short for keijidosha—meaning light or compact automobile in Japanese—these cars were designed with smaller bodies and engines to keep costs low. The move paid off: Kei cars quickly gained popularity and still account for nearly a third of all car sales in Japan. Today, they are limited to engines of up to 660 cc and dimensions of 3.4 metres in length, 1.48 metres in width, and 2 metres in height, though they have evolved to become far more advanced and refined. In contrast, India's entry-level car segment has seen a sharp decline. Sales have slumped, while utility vehicles dominated the passenger vehicle market in 2024–25, making up 65% of total sales—an increase from 60% the previous year. Live Events Maruti Suzuki, which has a capex of Rs 8,000-9,000 crore for the current fiscal, is looking to enhance exports this year with the domestic market expected to remain in slow lane. Bhargava said the company will start sales of its electric model e-Vitara from September this year with the bulk of 70,000 units to be produced to be exported.
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Business Standard
30-04-2025
- Automotive
- Business Standard
Maruti Suzuki gears up for SUV showdown with upcoming 7-seater Grand Vitara
Maruti Suzuki is gearing up to challenge the dominance of Mahindra's XUV700 in the competitive 7-seater SUV segment. As the current front-runner in the affordable full-size SUV category, the XUV700 has held its ground against heavyweights like the Tata Safari and Toyota Innova Hycross. But a formidable new contender is on the horizon. India's largest carmaker will launch two new SUVs in FY26—including the much-anticipated 7-seater SUV based on the Grand Vitara platform. This new model is expected to shake up the market with its competitive pricing and Japanese engineering. It will arrive shortly after the debut of Maruti's first electric SUV, the e-Vitara, set to hit showrooms in September 2025. Maruti Suzuki Grand Vitara: The expectations The Maruti Suzuki Grand Vitara 7-seater will follow the brand's design language, according to the previously obtained spy photos. The SUV will have a similar appearance to the present Grand Vitara and be somewhat longer due to its additional seats. The car will also get a completely new front fascia and a new rear end design. Though the alloy wheels have a fresh design, the profile is probably going to remain the same. The new 7-seater model will have conventional headlights with integrated LED DRLS, in contrast to the Grand Vitara 5-seater's split headlight design with DRLs on top and headlights below. Fog lamps are also included in the 7-seater model, and we expect them to have a cornering feature. In addition, the SUV's feature list is probably going to grow. It may also receive a set of Level-2 ADAS features, which would place it among the first cars with the safety feature. This is because the front parking sensors are located in the lower grill. The new 7-seater SUV is anticipated to assist Maruti in breaking into the 3-row SUV market, even though the e-Vitara may not be a volume churner in its first few years in India. The e-Vitara is based on the Heartect-e, a new BEV platform. Two battery pack configurations are available: 49 kWh and 61 kWh for this electric variant. It is stated that the e-Vitara can travel over 500 kilometres on a single full charge. In addition to its remarkable specs, the e-Vitara has a high safety rating. It is the first Maruti vehicle with Level 2 ADAS and seven airbags. Maruti Suzuki Grand Vitara: The Rivals SUV sales in India increased from 21,46,404 units in FY24 to 23,66,272 units in FY25, a 10.24% year-over-year (y-o-y) increase. In the domestic passenger vehicle (PV) market, the SUV segment's share increased from 50.49% in FY24 to 54.34% in FY25. Currently, Maruti sells four SUVs in India, such as the Grand Vitara, Jimny, Brezza, and Fronx. The Grand Vitara, Brezza, and Fronx are some of the best-selling SUVs in the nation. It is not anticipated to be as large as the MG Hector Plus or the Mahindra Scorpio-N. In terms of road presence, it will resemble the Hyundai Alcazar to some extent. The robust demand for the 3-row SUV market is demonstrated by the high volumes of the Mahindra Scorpio and Mahindra XUV700, which are 1,64,842 and 93,082 units, respectively. In India, the electric vehicle market is still in its infancy, accounting for only 3% of all automobile sales. The launch of a Maruti BEV is anticipated to significantly advance this market in such a situation. It will be interesting to observe how Maruti uses their seven-seater vehicle to capitalise on this demand. Maruti Suzuki Grand e-Vitara to be launched soon? The e-Vitara is the first BEV produced by Suzuki Motor Corporation, the parent company of Maruti Suzuki India. The e-Vitara, a global model, will be produced in Maruti's Gujarat plant and sent to more than 100 countries. By the end of September 2025, it will be available for purchase in India. At the 2025 Bharat Mobility Global Expo, the e-Vitara made its premiere in India. According to the automaker, a significant portion of the almost 70,000 electric SUVs it plans to produce in FY26 would go to overseas markets.
