Auto stock rallies as a company’s auto sales registered an uptick of 30% in December 2024.
The Indian automotive industry has grown immensely due to rising demand as well as the Government policies and markets. Major companies like Tata Motar company Suzuki, and Mahindra diversified their product offer to consumer to keep pace with changing consumer preferences. With the emphasis on EVs and advanced features these Indian auto makers have a great opportunity domestically and across the globe.
Auto stock Potentials and opportunities
The Indian automotive industry has a bright future which is supported by increasing disposable income and the expansion of the middle class population. An important factor is the availability of auto loans which foster the demand for consumer spending. Furthermore, consumer spending on auto has also seen a slight change towards preference to premium SUVs which has traditionally not been the case in India. This increasing consumer demand for SUVs focused on electric mobility innovation can open a lot of doors for the industry.
Auto stock Target Price
Over the last two trading sessions, shares of Maruti Suzuki have surged more than 6% starting January 2025. It seems that on January 02, 2025 the target stock will be at 11518, an increase of 2.78% from the last stock price of 11208.
Auto stock Increase in output
In the Mini and Compact segment which are cars like Alto, S-Presso, Baleno and Swift Maruti Suzuki has recorded a record selling mark of 77,524 from 63,855 which they achieved in December 2023.
However, due to high demand and great manufacturing performance the passenger vehicles production output increased to 155,553 more than the last year production output of 119,518 units.
This is capable of happening due to already existing models and the introduction of newer models, which in turn would assist the firm in addressing the enhancing requirements of the Indian customers.
Auto stock Increasing Presence in the Market
From the introduction of Brezza, Ertiga, Fronx, and Jimny, Maruti Suzuki has been concentrating on increasing its share in the market which can be noted in the production levels of their utility vehicles. In Dec 2024, the company was able to manufacture 64,212 units of utility vehicles, which is an increase when compared to Dec 2023’s 44,290 units. This utility vehicle target focusses on the shifting demand pattern of consumers towards SUVs and crossovers which would in turn aid Maruti in capturing a larger percentage of this competitive particular landscape.
Increasing Model Offerings and Penetration in New Markets
The production of the light commercial vehicle Super Carry also experienced growth, increasing from 15153 units to 2101 units in between December 2023 and December 2024. With Maruti expanding into passenger cars, utility cars, and commercial vehicles, it broadens its chances within the Indian automotive market. This diversification means that the company is in a better position to serve out different targets in the market and satisfy a greater number of customers.
Recent Figures
In recent development, the company witnessed immense growth in its production volume across its several segments with regard to 2024. This included a high demand production of the mini and compact sub segments over the spanning years with a sharp increase in turnover from 63,855 units to 77,524 units in the span of just a year.
The overall output of passenger vehicles displayed an impressive growth in the year with a total production of 155553 vehicles up from 119518 units showcasing a booming market as a result of solid industrial output.
This increase is a combination of sales from models already in place and new offerings making it easier for the firm to cater to the increasing demand of the Indian market.
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Maruti Suzuki India also ramped up the domestication of its utility vehicles including Brezza, Ertiga, Fronx and Jimny. It manufactured 64,212 units of utility vehicles in December 2024 compared to the production of 44,290 in December 2023. This market penetration into the UTV segment is in tandem with the shifting trend towards SUVs and crossovers and is likely to increase the Scottish company’s share of the market in this vigorous race.
On the occasion of maruti invictus, the production of light commercial vehicles such as the super carry increased from 1510 units in December 2023 to21101 This diversification of Maruti’s operations into passenger cars, utility vehicles, and commercial vehicles makes Maruti a certain player in Indian automotive market. Comprising a comprehensive portfolio, the firm is more sophisticated in its ability to reach to a greater percentage of the market, which spans across all segments of varying consumer needs.