Automobile major Maruti Suzuki will consider the SUV segment as a key area to lift its overall market share in the country. The company’s overall market share is under 45% currently and the target is to lift it to 50%.
Shashank Srivastava, Senior Executive Director, Maruti Suzuki said that in the non-SUV segment, the company has a market share of more than 65%, whereas, it is not big in the SUV segment.
“SUV is the largest and fastest-growing segment and Maruti must have a good market share in this. In the entry-level SUV segment, Maruti’s share is 20% of the 6.6 lakh cars which is being sold annually. But Maruti does not have a car in the mid-SUV segment whose size is 5.5 lakh,” he said.
“There is a need to enter the mid-SUV segment for which it will launch a model in the last week of September this year,” he added. Further, he said that the company needs to grow in volume and market share both.
Brokerage firm Motilal Oswal had given a buy rating on the stock, with a target price of ₹ 11,300. The shares closed at ₹ 8953.00 on Friday and this translates to an upside of 26.22%.
The brokerage in its research report highlighted the company’s focus on SUVs as it it launching new-age products to fill product gaps, its export focus, the kick-start of electrification through strong hybrids in FY23 and BEV in FY25, and that the company is leveraging multiple means to meet its end objective of reducing CO2 emissions.
The report mentioned that the management is targeting volumes of 2m units in FY23 and is confident of regaining its 50% market share in the near future.
Written by Simran Bafna
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