Maruti Suzuki , India's leading automobile manufacturer, has achieved a remarkable milestone in the global automotive industry. The company's market capitalization has soared to $57.60 billion, securing its position as the eighth most valuable automaker worldwide. This impressive valuation has propelled Maruti Suzuki ahead of several established international players in the automotive sector.

Market Capitalization Milestone

Maruti Suzuki's current market value of $57.60 billion now surpasses that of renowned automakers:

Notably, Maruti Suzuki has also outpaced its parent company, Suzuki Motor Corporation, which currently holds a market capitalization of $29.00 billion.

Global Automotive Market Leaders

While Maruti Suzuki's achievement is significant, the global automotive market continues to be dominated by:

1. Tesla - $1.47 trillion
2. Toyota - $314.00 billion
3. BYD - $133.00 billion

Driving Factors Behind Maruti's Growth

Maruti Suzuki's success can be attributed to several key factors:

• Focus on Small Cars: Over 60% of Maruti's sales volume comes from the small car segment.
• Affordable Models: The company offers cost-effective vehicles that appeal to Indian consumers.
• Fuel Efficiency: Maruti's cars are known for their fuel-efficient performance, a crucial factor in the Indian market.

Strong Festive Season Performance

The company has witnessed a substantial boost in sales and inquiries during the ongoing festive season:

• Navratri Sales: 75,000 cars sold since the beginning of Navratri.
• Daily Inquiries: Increased to 80,000, up from the usual 40,000-45,000.
• Daily Bookings: Risen to 18,000, leading to extended waiting periods for certain small car models.

This surge in demand underscores Maruti Suzuki's strong market position and consumer appeal in India. The company's ability to cater to local preferences while maintaining global competitiveness has clearly paid off, as reflected in its impressive market valuation.

As Maruti Suzuki continues to strengthen its position in the global automotive landscape, it will be interesting to see how the company leverages this success to further expand its market share and potentially challenge other international automotive giants in the future.

Maruti Suzuki India has achieved a remarkable milestone in the global automotive industry, securing the eighth position worldwide among automakers by market capitalization. The company's market value has soared to an impressive $57.60 billion, outpacing several international automotive giants.

Market Cap Milestone

Maruti Suzuki has surpassed well-established global players in market capitalization:

• Ford Motor: $46.30 billion
• General Motors: $57.10 billion
• Volkswagen: $55.70 billion

This achievement places Maruti Suzuki in an elite group of automotive companies, trailing behind industry leaders such as:

1. Tesla: $1.47 trillion
2. Toyota: $314.00 billion
3. BYD: $133.00 billion
4. Ferrari: $92.70 billion
5. BMW: $61.30 billion
6. Mercedes-Benz Group: $59.80 billion

Notably, Maruti Suzuki's market capitalization now exceeds that of its Japanese parent company, Suzuki, which stands at $29.00 billion.

Stock Performance and Driving Factors

Maruti Suzuki's stock has demonstrated impressive performance, rallying 25.5% since August. This surge has been attributed to several factors:

• Improved investor sentiment following indirect tax reforms announced by Prime Minister Narendra Modi
• Benefits from the revamped GST regime implemented on September 22
• Strong market demand and sales performance

The company's share price has seen a significant increase:

This growth outpaced the Nifty Auto index, which gained 11% during the same period.

Recent Business Performance

Maruti Suzuki has been experiencing robust demand since the implementation of the new GST regime:

• Daily bookings have reached 18,000 units
• The company is receiving approximately 80,000 daily inquiries
• Booking growth in Tier 2 and Tier 3 cities is close to double following GST rate cuts

GST Impact

The GST rate cuts that took effect on September 22 have had a significant impact on Maruti Suzuki's sales:

• GST rates on vehicles were reduced to 18% and 40% from previous rates of 28-31% and 43-50% respectively
• Small cars in the 18% GST category showed particularly strong response, with price reductions of 8.5%
• The company plans to launch a finance product allowing customers to own entry-level cars for ₹1,999 per month

Inventory and Demand

While dealer inventory is currently sufficient, waiting periods for some variants are expected soon due to the surge in demand.

Investor Interest

Foreign portfolio investors have shown increased interest in Indian auto stocks, with Maruti Suzuki emerging as a key beneficiary. This heightened investor attention has contributed to the company's strong market performance and valuation growth.

The remarkable ascent of Maruti Suzuki in global market capitalization rankings, coupled with the significant boost in bookings following GST rate cuts, underscores the company's strong market position and investor confidence in its future prospects. As the Indian automotive market continues to evolve, Maruti Suzuki's performance will be closely watched by industry observers and investors alike.