Maruti Suzuki share price target: eVitara, other factors that may give stock a 15% lift
PhillipCapital noted that the Hansalpur plant, where the eVitara is manufactured, is currently operating at over 100 per cent capacity with plans to expand further.
- Aug 29, 2025,
- Updated Aug 29, 2025 12:10 PM IST
PhillipCapital has maintained its 'Buy' recommendation for Maruti Suzuki with a target price of Rs 16,899, which suggests a potential upside of 15 per cent from its market price of Rs 14,711. The brokerage firm cited the introduction of new models, including the eVitara electric SUV, alongside favourable government policies, as key growth drivers for the company in the coming months.
PhillipCapital said the eVitara's production commenced at Maruti Suzuki's Hansalpur plant, with exports already underway to over 100 countries, including major markets in Europe and Japan. The domestic launch of the eVitara is anticipated in January 2026, with the company expecting to sell around 67,000 units annually.
In addition to the eVitara, Maruti Suzuki is also eyeing opportunities in the hybrid vehicle market. The company is entering the hybrid ambulance segment under the PM E-DRIVE scheme, supported by Rs 500 crore in subsidies. This strategic expansion into hybrid vehicles is expected to leverage the growing demand for fuel-efficient and environmentally friendly vehicles, the brokerage said.
PhillipCapital noted that the Hansalpur plant, where the eVitara is manufactured, is currently operating at over 100 per cent capacity with plans to expand further. A fourth plant dedicated to electric vehicles is projected to come online by the second half of FY26, adding 250,000 units of capacity.
Analysts at PhillipCapital have adjusted the price-to-earnings multiple for Maruti Suzuki from 25x to 27x, reflecting expectations of increased demand and improved financial metrics. The brokerage also said that Maruti Suzuki stands to benefit significantly from any potential GST rate reductions, which would positively impact the price-sensitive segment of vehicles with engine capacities of 1200cc and below.
The TDSG battery joint venture, part of Maruti Suzuki's electric vehicle strategy, has become a pioneer in India for localising lithium-ion cell production. With a capacity of 1.8 crore cells per year, the JV plans to expand by an additional 1.2 crore cells annually, underlining Maruti's commitment to sustainable and cost-effective vehicle technology.
Globally, the trend is shifting from diesel to hybrid adoption, and India is no exception, PhillipCapital said. Maruti Suzuki's strategic positioning in this transition is expected to yield substantial benefits, particularly if government policies continue to favour hybrid and electric vehicle adoption. This could potentially mirror the recovery seen post the global financial crisis, driven by VAT reductions and other supportive measures.
PhillipCapital has maintained its 'Buy' recommendation for Maruti Suzuki with a target price of Rs 16,899, which suggests a potential upside of 15 per cent from its market price of Rs 14,711. The brokerage firm cited the introduction of new models, including the eVitara electric SUV, alongside favourable government policies, as key growth drivers for the company in the coming months.
PhillipCapital said the eVitara's production commenced at Maruti Suzuki's Hansalpur plant, with exports already underway to over 100 countries, including major markets in Europe and Japan. The domestic launch of the eVitara is anticipated in January 2026, with the company expecting to sell around 67,000 units annually.
In addition to the eVitara, Maruti Suzuki is also eyeing opportunities in the hybrid vehicle market. The company is entering the hybrid ambulance segment under the PM E-DRIVE scheme, supported by Rs 500 crore in subsidies. This strategic expansion into hybrid vehicles is expected to leverage the growing demand for fuel-efficient and environmentally friendly vehicles, the brokerage said.
PhillipCapital noted that the Hansalpur plant, where the eVitara is manufactured, is currently operating at over 100 per cent capacity with plans to expand further. A fourth plant dedicated to electric vehicles is projected to come online by the second half of FY26, adding 250,000 units of capacity.
Analysts at PhillipCapital have adjusted the price-to-earnings multiple for Maruti Suzuki from 25x to 27x, reflecting expectations of increased demand and improved financial metrics. The brokerage also said that Maruti Suzuki stands to benefit significantly from any potential GST rate reductions, which would positively impact the price-sensitive segment of vehicles with engine capacities of 1200cc and below.
The TDSG battery joint venture, part of Maruti Suzuki's electric vehicle strategy, has become a pioneer in India for localising lithium-ion cell production. With a capacity of 1.8 crore cells per year, the JV plans to expand by an additional 1.2 crore cells annually, underlining Maruti's commitment to sustainable and cost-effective vehicle technology.
Globally, the trend is shifting from diesel to hybrid adoption, and India is no exception, PhillipCapital said. Maruti Suzuki's strategic positioning in this transition is expected to yield substantial benefits, particularly if government policies continue to favour hybrid and electric vehicle adoption. This could potentially mirror the recovery seen post the global financial crisis, driven by VAT reductions and other supportive measures.