Maruti Suzuki revs up EV plans, but stock under pressure; should you buy?

Indian carmaker Maruti Suzuki is expanding its electric vehicle (EV) plans, but its stock isn’t reflecting the optimism. Despite announcing an ambitious EV roadmap, shares declined almost 2 per cent to Rs 12,460.55 today. The dip raises questions—is this a temporary market reaction, or are investors cautious about Maruti’s ability to tackle rising competition and evolving consumer demand?

Four BEVs, Big Plans, Bigger Ambitions

Maruti Suzuki plans to launch four Battery Electric Vehicles (BEVs) by FY2030, starting with the much-anticipated e-VITARA. The company wants to be India’s top EV maker, aiming to dominate production, exports, and sales. Unlike its rivals banking solely on electric, Maruti is hedging its bets with a multi-powertrain strategy, offering hybrids (HEVs), CNG, and flex-fuel vehicles (FFVs) alongside BEVs.

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Supercharging Production to 4 Million Units

With India being Suzuki’s biggest market, Maruti is going all in. To meet soaring demand, the company is expanding aggressively, with new plants coming up in Kharkhoda and Gujarat, pushing annual capacity to 4 million units. This will cement India as Suzuki’s global export hub.

Market Share Blues: A Comeback Plan?

Maruti’s grip on the Indian market has loosened slightly amid a surge in SUV demand and rising EV competition. To reclaim its 50 per cent market share, the company is beefing up its SUV and MPV lineup, while ensuring entry-level models remain accessible for first-time buyers.

Investors in Wait-and-Watch Mode

Despite Maruti's future-ready game plan, today’s 1.78 per cent drop in stock price suggests investors are weighing risks. Tough competition, shifting consumer preferences, and macroeconomic uncertainties are all at play. However, with Maruti’s cost-efficient approach and brand trust, it could be a long-term winner in the EV race.

For now, it is a case of long-term strategic vision versus short-term market fluctuations. However, Maruti Suzuki remains steadfast in its growth trajectory.