The automobile sector has started seeing volume growth, the crucial economy segment included. Maruti Suzuki India (MSIL) could be a big beneficiary as the country’s largest passenger vehicle (PV) maker has seen several favourable developments including volume recovery.
Demand for its new sports utility vehicles (SUVs) appears to be good, and the company has 4 lakh outstanding orders by April 2023, (up from 3.6 lakhs in January 2023). Siam (Society of Indian Automobile Manufacturers) estimates that passenger vehicle demand would grow by 5-7 per cent in the 2023-24 financial year (FY24) and MSIL is likely to beat the market growth.
The company, which already has around 2.25 million capacity, intends to increase it by 1 million, with a capex of Rs 8,000 crore for FY24. It expects a rise in CNG vehicle orders after the latest government administered pricing mechanism (APM) price-setting which reduced fuel costs.
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