Maruti Suzuki’s Mid-Term Expansion Plan Could Be Boon For Key Suppliers

Maruti Suzuki India Ltd. has unveiled its mid-term plan for FY25-30E, aiming to expand its market share significantly. The cornerstone of this plan is to capture 50% of the Indian market, a move that could potentially boost several key suppliers.

In the auto ancillaries and auto components sectors, Motherson Sumi Wiring India Ltd. and Uno Minda Ltd. are key players that are set to gain from this expansions, per Nomura.

MSUMI specialises in wiring harnesses for the automotive industry, providing essential components that ensure the smooth operation of vehicles. Uno Minda, on the other hand, offers a wide range of automotive components, including lighting, acoustics, and electrical parts, catering to various automobile manufacturers.

Both stocks have a 'buy' rating from Nomura.

Sona BLW Precision Forgings Ltd. and Sansera Engineering Ltd. also play crucial roles in the auto ancillaries and auto components sectors. SONACOMS focuses on precision forging and manufacturing of automotive components, while Sansera Engineering provides a diverse array of engineering solutions, including engine and transmission components. Both these stocks also have a 'buy' rating from Nomura.

MSIL’s strategy includes procuring battery electric vehicle batteries from FinDreams and Hybrid Electric Vehicle batteries from TDSG. Additionally, motorcycle batteries will be sourced from Tata Gotion. MSIL is also considering establishing a battery factory and in-house procurement of battery materials. Although Suzuki had previously announced a BEV battery cell plant in India starting in 2026, the latest plan did not provide an update on this project.

The overall plan is viewed positively, with a strong emphasis on investment in new technologies, planning, development, and exports. The domestic volume target for India is set at 2.54 million units, representing a 5% Compound Annual Growth Rate.