Maruti Suzuki races past BMW in market cap as German carmaker revises guidance for 2026

Maruti Suzuki India Ltd, the maker of small cars such as the Alto and SPresso, has overtaken German luxury car manufacturer BMW AG in market capitalisation.

As of June 18, the market cap of Maruti Suzuki stood at Rs 4.25 lakh crore compared with Rs 3.9 lakh crore m-cap of BMW. Maruti Suzuki is the world’s 12th largest carmaker in terms of market valuation, ahead of Japan’s Honda and South Korea’s Kia.

Maruti Suzuki raced ahead of BMW this week after shares of the German premium car giant tanked 7% to hit their lowest level in six years. BMW adjusted its full-year guidance for the 2026 financial year owing to weak demand forecast in China and the impact of West Asia conflict on consumer sentiments across several markets.

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“The negative development in the Chinese automotive market accelerated further in the second quarter—particularly for non-electric vehicles,” BMW Group said in a statement on June 16.

“In light of this, the China Passenger Car Association has repeatedly revised its market forecast downward for the full year, once again on Monday this week. This situation has resulted in intensified competition in China and across the Asia-Pacific region.The BMW Group cannot operate in isolation of this market development. Positive sales volume development in Europe and the U.S. cannot offset the decline in sales in China and the Asia-Pacific region,” it said.

In addition, BMW said the impact of the conflict in the Middle East on its global business extends beyond the company’s original assumptions. “On the one hand, energy prices remain elevated and weigh on the cost structures in the company. On the other hand, the lack of stability due to the conflict is negatively impacting consumer sentiment across markets around the world,” it said, warning that this will contribute to a significant decline in profit and free cashflow in the second quarter versus previous year.

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BMW has lowered its financial outlook for 2026, warning that business conditions have deteriorated more than expected. The German automaker now expects vehicle deliveries to decline slightly from last year, compared with its earlier forecast of flat sales. It has also sharply cut its profitability guidance, projecting an automotive EBIT margin of 1-3%, down from its previous estimate of 4-6%.

The company expects returns on capital employed in its automotive business to fall to 1-5%, versus the earlier guidance of 6-10%. As a result, BMW now anticipates a significant decline in group pre-tax profit this year, compared with its previous expectation of a moderate drop.

“We have strong product momentum: With the NEUE KLASSE, we will put the strongest BMW portfolio in history on the roads over the next two years,” said Milan Nedeljković, Chairman of the Board of Management of BMW AG. “At the same time, we will adapt our current structures and processes to the drastic downturn in market conditions. It is our entrepreneurial responsibility, therefore, to significantly intensify and accelerate our ongoing measures. It’s all about speed and efficiency.”

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