Maruti has outstripped its parent company Suzuki in terms of market value and the lead is expected to increase further.
After overtaking Tata Motors as the most valuable automotive company in India, Maruti Suzuki has outshone its parent company Suzuki Motor in terms of market value. This is a big milestone achieved by India’s largest carmaker, thanks to their rapidly growing market share amidst the sluggish automobile market scenario in our country. Outgrowing their parent company is a monumental achievement for Maruti, as no other MNC subsidiary has a market cap close to its parent company.
The market capitalisation of Maruti currently stands at $19.73 billion (Rs. 1.26 lakh crores) while the Japanese major Suzuki’s market capitalisation is valued at $19 billion. Suzuki’s international sales was dwindling in the recent past barring the Asian market, as Maruti was busy spinning big volumes with strong financial performance. Now the lead taken by Maruti is expected to widen further from Suzuki in the coming days.
With the improving economy and new launches planned for the coming years, Maruti is expected to see significant growth driven by volumes. Parent company Suzuki is taking keen interest in the Indian market, which is evident. They are investing big on developing diesel engines for India and have started designing cars specifically for the Indian market. The first car designed by Suzuki exclusively for India was the Ertiga MPV which is also exported to Indonesia.
We all are aware that Maruti is the king of churning out big volumes but now they are also focussing on large chunk of profit margins with the introduction of their premium brand NEXA. The new strategy of launching a premium label is to attract a wider audience. It will cater to buyers considering cars around and above the Rs. 10 lakh mark. Maruti will launch the S-Cross crossover next month that will be available exclusively at its new NEXA premium dealerships.