Maruti Suzuki’s all-new model, the Grand Vitara, priced between Rs 10.45 lakh and Rs 19.65 lakh, is seeing a strong order book with over 57,000 units booked so far. The model has a 1.5-litre petrol powertrain mated with strong and mild hybrid technology. It will compete with the likes of Hyundai Creta, Kia Seltos, and Tata Harrier, among others.

While India’s largest carmaker looks to gain market share in the fast-growing mid-sized sports utility vehicle (SUV) segment with the Grand Vitara, analysts seem divided with their target prices on the stock ranging between a 16 percent downside to an 11 percent upside from Monday’s closing price. Morgan Stanley believes market share gains are likely, but CLSA thinks otherwise.

CLSA expects consensus estimates to be downgraded. “We believe consensus estimates are too bullish on market share gains for Maruti Suzuki, which we believe will be difficult given the increasing competitive intensity in the segment.

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Nomura, on the other hand, sees the automaker’s market share improving to 43-44 percent in 2022-2023 financial as it factored in 25 percent and 5 percent volume growth in the current and next financial year.

Maruti Suzuki shares started in the green on Tuesday but slipped to red soon after. The stock was trading 0.87 percent lower from the previous close at Rs Rs 8,754 on BSE at 11:18 am.

The brokerages noted that Grand Vitara is priced Rs 50,000 higher than Toyota Hyryder. Morgan Stanely said the car prices are largely in-line with street expectations. Still, Nomura believes that the “more aggressive pricing” is aimed at complying with upcoming more stringent Corporate Average Fuel Economy (CAFE) norms.

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CLSA said Maruti Suzuki had priced the Grand Vitara at a slight premium to Toyota’s Hyryder with no noticeable feature difference. "We believe this could have an impact on its booking numbers, and customers may shift bookings to Toyota, which is a well-known brand for SUVs,” it said.

The Grand Vitara is built in partnership with Toyota and will be manufactured at the latter’s facility near Bengaluru along with Hyryder. The company has added multiple new features to the SUV to make it competitive in a segment dominated by Hyundai and Kia.

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First Published:Sept 27, 2022 11:32 AM IST