Maruti Suzuki share price: Nomura ups target, retains ‘Neutral’; here's why
Maruti Suzuki announced the commencement of production of its first all-electric SUV, the e-Vitara, at its Hansalpur facility in Gujarat.
- Aug 28, 2025,
- Updated Aug 28, 2025 1:27 PM IST
Shares of Maruti Suzuki India Ltd were in focus on Thursday after foreign brokerage Nomura raised its target price on the largest carmaker to Rs 13,113 from Rs 12,886. Despite the revision, the new target still suggests an 11 per cent downside from the current market price of Rs 14,750. Nomura maintained its ‘Neutral’ rating on the stock.
Maruti Suzuki announced the commencement of production of its first all-electric SUV, the e-Vitara, at its Hansalpur facility in Gujarat. This plant is set to become a global manufacturing hub for the e-Vitara, which will be exported worldwide, with an initial focus on European markets. The strategic location in Gujarat allows for efficient logistics and supply chain management, crucial for meeting international demand, Nomura said.
The company plans to produce around 70,000 units of the e-Vitara in the fiscal year 2026, predominantly for export. Maruti Suzuki has already introduced the model in the UK, with a broader global launch scheduled in the coming months. Nomura said the aggressive production target reflects the company's commitment to establishing a strong foothold in the global EV market.
Key to the production of the e-Vitara is the new battery components plant inaugurated at the Hansalpur site. This facility, established by Suzuki in collaboration with Toshiba and Denso, focuses on the localisation of hybrid battery electrodes, achieving 80% localisation. Such localisation efforts not only reduce costs but also enhance the sustainability of the supply chain by minimizing dependency on imports.
Nomura said the e-Vitara is based on a dedicated electric vehicle platform developed in partnership with Suzuki, Toyota, and Daihatsu. This model features advanced specifications including 4WD, a 61Kwh battery, 7 airbags, and Level 2 ADAS, positioning it as a premium global product. These features are designed to meet the safety and performance expectations of discerning global consumers.
Maruti Suzuki faces competition in the European EV market from Chinese and Korean manufacturers such as BYD, Hyundai, and Kia. The intense competition is expected to be a critical factor in the region. The company's strategy involves leveraging its established brand reputation and extensive sales network to gain a competitive edge.
In the Indian market, Maruti Suzuki is anticipated to benefit from recently announced GST cuts, which could provide an advantage despite the higher price point of the e-Vitara compared to local competitors. This fiscal incentive is expected to stimulate domestic demand and potentially offset the premium pricing, Nomura said.
Nomura said the management has indicated that the margins are expected to remain healthy due to a cost-plus markup model with prioritised exports. The company plans to scale the Gujarat plant to a capacity of one million units, supported by an investment of Rs 70,000 crore over the next 5-6 years. This significant investment underscores Maruti Suzuki's long-term vision and confidence in the growth potential of the EV market.
Shares of Maruti Suzuki India Ltd were in focus on Thursday after foreign brokerage Nomura raised its target price on the largest carmaker to Rs 13,113 from Rs 12,886. Despite the revision, the new target still suggests an 11 per cent downside from the current market price of Rs 14,750. Nomura maintained its ‘Neutral’ rating on the stock.
Maruti Suzuki announced the commencement of production of its first all-electric SUV, the e-Vitara, at its Hansalpur facility in Gujarat. This plant is set to become a global manufacturing hub for the e-Vitara, which will be exported worldwide, with an initial focus on European markets. The strategic location in Gujarat allows for efficient logistics and supply chain management, crucial for meeting international demand, Nomura said.
The company plans to produce around 70,000 units of the e-Vitara in the fiscal year 2026, predominantly for export. Maruti Suzuki has already introduced the model in the UK, with a broader global launch scheduled in the coming months. Nomura said the aggressive production target reflects the company's commitment to establishing a strong foothold in the global EV market.
Key to the production of the e-Vitara is the new battery components plant inaugurated at the Hansalpur site. This facility, established by Suzuki in collaboration with Toshiba and Denso, focuses on the localisation of hybrid battery electrodes, achieving 80% localisation. Such localisation efforts not only reduce costs but also enhance the sustainability of the supply chain by minimizing dependency on imports.
Nomura said the e-Vitara is based on a dedicated electric vehicle platform developed in partnership with Suzuki, Toyota, and Daihatsu. This model features advanced specifications including 4WD, a 61Kwh battery, 7 airbags, and Level 2 ADAS, positioning it as a premium global product. These features are designed to meet the safety and performance expectations of discerning global consumers.
Maruti Suzuki faces competition in the European EV market from Chinese and Korean manufacturers such as BYD, Hyundai, and Kia. The intense competition is expected to be a critical factor in the region. The company's strategy involves leveraging its established brand reputation and extensive sales network to gain a competitive edge.
In the Indian market, Maruti Suzuki is anticipated to benefit from recently announced GST cuts, which could provide an advantage despite the higher price point of the e-Vitara compared to local competitors. This fiscal incentive is expected to stimulate domestic demand and potentially offset the premium pricing, Nomura said.
Nomura said the management has indicated that the margins are expected to remain healthy due to a cost-plus markup model with prioritised exports. The company plans to scale the Gujarat plant to a capacity of one million units, supported by an investment of Rs 70,000 crore over the next 5-6 years. This significant investment underscores Maruti Suzuki's long-term vision and confidence in the growth potential of the EV market.