On Tuesday, the shares of leading passenger vehicle manufacturers rose by 6.8% to ₹12,846.95 per share after the Uttar Pradesh government announced a 100% exemption on registration fees for hybrid and plug-in hybrid electric vehicles.
At 12:50 p.m., Maruti Suzuki India Ltd (NS:MRTI) shares were trading at Rs 12,818.50 on the NSE, marking an increase of Rs 792.50 or 6.59% from the previous close. The company’s market capitalization stands at ₹4,00,511 crore.
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What News:
The Maruti Suzuki India shares surged following the Uttar Pradesh government’s decision to exempt registration fees on hybrid cars. This exemption offers a 100% exemption for strong hybrid electric vehicles and plug-in hybrid electric vehicles, reducing on-road prices by up to ₹4 lakh.
Previously, the Uttar Pradesh government charged an 8% road tax on vehicles costing less than ₹10 lakh and a 10% tax on vehicles over ₹10 lakh (ex-showroom).
With the new policy, customers will only pay a nominal amount for strong hybrid car registration in the state. Maruti Suzuki’s hybrid models, including the Grand Vitara and Invicto, are likely to benefit from this change.
Uttar Pradesh is a significant market for Maruti Suzuki’s passenger vehicles. In the first half of 2024, passenger vehicle sales in the state increased by 13.5% year-on-year to 2.36 lakh units. Uttar Pradesh accounts for over 10% of Maruti Suzuki India Ltd.’s sales, making it one of the largest car markets in India.
In line with Suzuki’s growth strategy for India, by FY 2030–31, electric vehicles are expected to constitute 15% of the sales volume, hybrids 25%, and CNG, biofuels, and internal combustion engines 60%.
Maruti Suzuki India Ltd. (NS:MRTI), the market leader in the domestic passenger vehicle segment, holds a market share of approximately 41.7% as of FY24, with popular models including the WagonR, Swift, Brezza, Baleno, Ertiga, and Fronx.
About the company:
Maruti Suzuki India Ltd was established in 1981. In 1982, a joint venture agreement was signed between the Government of India and Japan’s Suzuki Motor Corporation (SMC). The Company became a subsidiary of SMC in 2002. Today, Maruti Suzuki is
the market leader in the passenger vehicle segment in India and SMC’s largest subsidiary in terms of production volume and sales.
The Company primarily engages in the manufacturing, purchase, and sale of motor vehicles, components, and spare parts.
Financials:
The company’s revenue climbed by 20 percent year on year, rising from ₹1,17,571 crore in FY22-23 to ₹ 1,41,858 crore in FY23-24. During the same time period, net profit increased by 64 percent, from ₹ 8,211 crore to ₹ 13,488 crore.
The company’s share has delivered returns of 27 percent in six months and 31 percent in a year.
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Written by Omkar Chitnis
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