Maruti Suzuki - Product Launches To Drive Volume Outperformance: Motilal Oswal

Mix and operating leverage to drive margin recovery.

Variants of cars by Maruti Suzuki India Ltd. (Source: Company website)

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Motilal Oswal Report

Maruti Suzuki India Ltd. is expected to outperform in a moderating growth environment in FY24E, driven by its promising product pipeline. Although market share recovery has not happened despite the success of Grand Vitara, we estimate Maruti Suzuki’s market share to recover to ~44.4% by FY25E with the launch of three more new products in the next six to nine months.

This recovery in market share, along with a favorable mix of rising SUV share and operating leverage, will help Maruti Suzuki sustain margin recovery.

Further, we expect the company to benefit from its strength in CNG and strong hybrid in the face of tighter emission norms, especially with the withdrawal of small diesel engine and increasing cost of mid-size diesel in BS-VI Phase-II era.

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Motilal Oswal Maruti Suzuki Update.pdf
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