Share Market Live

NSE

Suzuki Motors held a briefing on Thursday, November 24 with regards to its India business where it reiterated that it is taking initiatives to recoup market share in the Indian market, which is witnessing a rapid shift towards SUVs.

The Japanese company, who operates in India through its partner Maruti Suzuki India, said that there have been strong pre-launch orders for the new Grand Vitara SUV, which suggests that a share recovery in the SUV market is highly likely and that it anticipates better mix in the short-term.

So far, Maruti Suzuki has received 1.7 lakh bookings for the Brezza and 80,000 bookings for the Vitara.

Currently, Maruti Suzuki boosts of a 41.8 percent market share in the domestic PV market. The company is looking at initiatives to transform Maruti's brand image in the medium-term from a small/compact vehicle manufacturer to mid-range and above.

Also Read: Maruti Suzuki sells nearly 2 lakh cars this festive season

BofA Securities said that Suzuki's most pressing issue is to strengthen its SUVs, and it will aim to maximize SUV production as semiconductor procurement normalizes as the first step. "Higher sales of compressed natural gas (CNG) vehicles and SUVs are positive for company," BofA said in its note.

Suzuki is also aiming to restore its Indian business operating profit margin to over 10 percent.

Maruti Suzuki is set to launch two new sport utility vehicles or SUVs in financial year 2024. Mahindra Thar's rival Jimny will be launched in June of next year. Maruti is also set to launch a small SUV rivaling the Kia Sonet and Hyundai Venue in April-May of the next financial year.

Also Read: Maruti Suzuki Eeco 2022 launched in India, prices start from Rs 5.13 lakh

Both the new SUV products will be showcased at the Auto Expo.

JP Morgan noted that the carmaker is seeing an upside from the export business centered on Africa.

BofA Securities said that the final demand for vehicles remains strong. "The order backlog stood at around 8,00,000 units for the overall industry at last count, and FY3/24 demand will remain solid."

Shares of Maruti Suzuki India are trading 1 percent higher at Rs 9,055.

Catch latest market updates with CNBC-TV18.com's blog

Also Read: Maruti Suzuki recalls 9,925 units of Wagon R, Celerio and Ignis – here’s why