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Hyundai Q3 FY2025 Sees 19% Profit Drop Amid Lower Sales and Rising Costs
Automobile News, Autos, Equities, Markets - January 30, 2025

Hyundai Q3 FY2025 Sees 19% Profit Drop Amid Lower Sales and Rising Costs

Hyundai Q3 FY2025 Sees 19% Profit Drop Amid Lower Sales and Rising Costs

Overview
On 28th January 2025, Hyundai published its third quarter reports of the financial year 2025 recording a contraction of 19 percent of consolidated net profit on a year-on-year basis. The PAT for the third quarter was about Rs.1,161 crore lower than the Rs. 1,425 crore for the previous financial year in the third quarter only. The reason for this is the fall in exports and sales at domestic level.

Performance of the company
In the third quarter of the financial year 2025, the company recorded a fall in total income to about Rs. 16,892 compared to its total income of about Rs. 17,244 crore in the same quarter of the previous financial year.

The company is popular for manufacturing hatchback models such as i20, Grand i10. It is also known for manufacturing Creta, which is a SUV model. In the third quarter of the financial year 2023-2024, the revenue of Hyundai was about Rs. 16,875. In the third quarter of the current financial year, it declined to about 1.3 percent which accounts to about Rs.16,648 crore of revenue.

After its earnings report was released, the stock price of Hyundai Motor declined.

Further, the company recorded a contraction in net profit by about 16 percent consecutively. Its net profit was about Rs. 1,375 crore in the second quarter of the financial year 2025. Also, its topline was about Rs. 17,260 crore in the second quarter which declined to about 3.5 percent in the third quarter of the current financial year.

While, its EBITDA margin was around 11.27 percent in the third quarter lower than 12.88 percent in the previous year of the same quarter. The reason for contraction in margins is due to slowdown in demand as well as rising geopolitical concerns.
Sales performance of the company
In terms of volume, Hyundai Motors was successful in selling about 1,86,408 units of passenger vehicles in the third quarter. From this total volume sales of passenger vehicles, volume sales in the domestic market was about 1,46,022 units. It is mainly driven by demand for SUV vehicles.

The company was also able to register its highest sales of CNG-based vehicles in terms of volume which accounts to growth of about 15 percent in the third quarter compared to 12 percent in the past financial year of the same period.

In terms of sales volume in rural areas, it surged to about 21.2 percent in the third quarter, higher than 19.7 percent recorded in the same quarter of the previous financial year. Also, the exports level of the company was recorded to about 40,386 units of sales volumes in the third quarter.

Future Perspective of the company
Hyundai Motors firmly believes that it will be able to expand its future growth by using its full potential and also search for new opportunities to expand profitability and sales volume of the company.

The company is optimistic about the development of the Electric vehicle segment in India. It is taking steps towards making electric vehicles with a broader view.

The company also states that the recent launch of Creta Electric model will promote growth and also acts as a breakthrough in the Electric vehicle sector.

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India’s export in auto industry reach 19 percent

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MRF Q1 FY26: Revenue Up, Profits Down on Margin Pressures
Automobile News, Autos, Equities, Markets - January 28, 2025

India’s export in auto industry reach 19 percent

India’s export in auto industry reach 19 percent

Overview
In the year 2024, the Indian automobile industry recorded a growth of about 19 percent in exports on a year-on-year basis. The main reason for this is strong demand in auto segments such as commercial vehicles, two-wheelers, and passenger vehicles.

The total volume of shipments of India in the auto industry surged to about 50,98,810 units in the year 2024. It is higher by about 19 percent compared to 42,85,809 units of shipments in the year 2023.

In the year 2024, the Indian auto industry saw recovery in demand from developing economies such as Africa and Latin America. It resulted in the growth in the export levels of the auto industry in India.

Export in different auto segments
The export of the passenger vehicle segment surged to about 10 percent in the calendar year 2024. It accounts for about exports of 7,43,976 units higher than the previous year’s export of about 6,77,956 units.

Similarly, an uptrend was recorded in exports of the utility vehicle segment of about 33 percent on a year-on-year basis. In terms of volume of exports, it was about 3,23,621 units. Also, the unit of export in the van segment was about 8,207 units which accounts for 14 percent growth on yearly basis.

In contrast to this, the passenger vehicles segment registered a fall of about 4 percent. In terms of volume of shipments, it was 4,12,148 units in the year 2024 in relation to 4,27,876 units in the year 2023.

The export growth of the two-wheelers segment was driven by expansion of export growth in moped, scooter and motorcycles. Overall, the export levels of two-wheelers in the year 2024 was about 23 percent higher which accounts to 39,77,162 units of exports in relation to 32,43,673 units of export in the calendar year 2023. While, the units of export of motorcycles was about 33,97,586 units in the year 2024 and it raised the export growth by about 24 percent. In the year 2024, the exports of moped vehicles increased by about 6,346 units of exports leading to yearly export growth of around 89 percent. Apart from this, the scooter recorded a growth in export units in the year 2023 was about 4,91,329 which later increased to 5,73,230 units of exports in the calendar year 2024.

The commercial vehicle segment also recorded a hike in export levels in the year 2024 by about 6 percent. It was higher in terms of volume export in the year 2024 by about 72,511 units compared to export levels of about 68,473 in the previous year.

The three-wheeler segment of the Indian auto industry recorded an export growth of about 2 percent in the year 2024. In terms of volume exports, it was 2,91,919 units of export in the year 2023 and raised to 2,98,235 units of export in the year 2024.

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Budget needs to focus on local infrastructure

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Renault's Bold Move: JSW Alliance Shifts India's EV Landscape
Automobile News, Autos, Equities, Markets - January 28, 2025

Maruti Suzuki India to hike prices from Feb

Maruti Suzuki India to hike prices from Feb

Overview
The market leader in automobiles, Maruti Suzuki India, declared on Thursday that it will begin raising prices for a number of models by up to Rs 32,500 on February 1, 2025. This change is a reaction to the rising operational and input costs the business has been dealing with. This decision comes after the corporation said in December 2024 that it will raise prices by up to 4% in January 2025 in order to offset growing expenses. Each model has a different rise in magnitude.

Price Hikes on Specific Models
The company is unable to pass on part of the higher costs to the market, despite its dedication to cost optimization and minimizing the impact on customers, according to the regulatory filing.

The company’s small car, the Celerio, would experience an ex-showroom price hike of up to Rs 32,500 under the new pricing, while the luxury variant, the Invicto, will see a price increase of up to Rs 30,000. The price of Swift will increase by Rs 5,000, while that of the company’s well-known Wagon-R model will increase by up to Rs 15,000. Price increases of up to Rs 20,000 and Rs 25,000 would be implemented for the SUVs Brezza and Grand Vitara, respectively.

According to the filing, the Alto K10 and S-Presso, two entry-level small cars, will see price increases of up to Rs 19,500 and Rs 5,000, respectively. It further stated that the price of the premium small model Baleno, the compact SUV Fronx, and the compact sedan Dzire would increase by much to Rs 9,000, Rs 5,500, and Rs 10,000, respectively. Currently, the company offers a variety of automobiles, ranging from the entry-level Alto K-10, which starts at Rs 3.99 lakh, to the Invicto, which costs Rs 28.92 lakh.

Maruti Suzuki Past Sales Record
The company revealed that overall passenger vehicle sales increased significantly from 134,158 units sold in November 2023 to 141,312 units sold in November 2024. With 144,238 sold domestically, 8,660 sold to other original equipment manufacturers (OEMs), and 28,633 sold abroad, the total number of vehicles sold was 181,531.

Maruti Suzuki India Ltd. announced that its total wholesale sales in December 2024 increased by 30% to 178,248 units from 137,551 units in the same month the previous year. According to a regulatory statement from Maruti Suzuki India, total domestic sales, including light commercial vehicle sales and deliveries to Toyota Kirloskar Motor, were 132,523 units last month, up 24.44 percent from 106,492 units in December 2023. Further, domestic passenger vehicle (PV) sales increased by 24.18% to 130,117 units in December 2024 from 104,778 units in the same month the previous year.

Sales of small cars, including the Alto and S-Presso, increased to 7,418 last month from 2,557 during the same period last year. In a same vein, sales of small cars including the Baleno, Celerio, Dzire, Ignis, Swift, and WagonR increased to 54,906 units from 45,741 units in December 2023. According to the firm, sales of utility cars, including as the Brezza, Ertiga, Fronx, Grand Vitara, Invicto, Jimny, and XL6, increased to 55,651 units in December 2024 from 45,957 units in the same month the previous year. Ciaz mid-sized sedan sales decreased to 464 units from 489 units in December 2023.

According to MSI, its exports in December increased to 37,419 units from 26,884 units in the same month the previous year.

Q2 Results were largely flat
Maruti Suzuki India’s Q2 FY25 net profit of Rs 3,069 crore fell 17.4% year over year, falling short of the Rs 3,710 crore forecast. Revenue met the Bloomberg estimate of Rs 37,229 crore, up 0.4% year over year to Rs 37,203 crore. EBITDA dropped 7.7% from the same time last year to Rs 4,417 crore, which was also less than the Rs 4,712 crore expectation. At 11.9%, the EBITDA margin decreased 100 basis points year over year. A significant increase in tax outgo, which increased to Rs 1,015 crore in Q2 from Rs 67 crore in Q1 of last year, was the main cause of the decline in profit.

Maruti Suzuki Share Price History
Over the past five sessions on the NSE, Maruti Suzuki India Ltd.’s shares have essentially remained unchanged, down 0.74%. The stock price has increased 9.67% in the last six months, while shares have increased more than 20% on the NSE in the last year. On January 24, Maruti Suzuki India’s stock fell 0.80% during the day to a low of Rs 11,949.35 a share. At 23,092.20, the benchmark Nifty 50 was down 0.49%.

Q3 Result Date announced
The results for the quarter that concluded on December 31, 2024, will be released shortly by Maruti Suzuki India Ltd. The biggest automaker in the nation, Maruti Suzuki India, offers a variety of sedans, hatchbacks, MUVs, and SUVs. The company wants to be the top EV manufacturer in the nation and recently unveiled the eVitara, its first electric vehicle. Maruti Suzuki was founded in 1981 and is currently valued at about Rs 3.75 lakh crore. The stock exchanges have previously been notified by the business of the release of its Q3 results.

In an exchange filing on January 13, Maruti Suzuki India stated that its board of directors will meet on Wednesday, January 29, to approve and announce the financial results for the quarter ending in December 2024. In a stock exchange filing, the firm announced that its board of directors will meet on Wednesday, January 29, 2025, to review and approve, among other things, the unaudited financial statements for the quarter that concluded on December 31, 2024.

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Budget needs to focus on local infrastructure

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MRF Q1 FY26: Revenue Up, Profits Down on Margin Pressures
Business, Equities, Markets - January 23, 2025

TATA Motor: Reorganization of the commercial vehicles business prior to public listing

TATA Motor: Reorganization of the commercial vehicles business prior to public listing

Tata Motors aims to list its commercial vehicles business on the stock exchanges in the upcoming financial year. Before listing, the company plans to reorganize its commercial vehicle business into eight different sub-segments.

The company wants to separate operations of commercial vehicles and passenger vehicles. It was made public by Tata Motors in the month of August, 2024.

Reason for separate entities
Its aim is to strengthen financial growth of the company and give both commercial and passenger vehicle businesses a way for independent growth. It also has goals regarding expansion of scope of operations at international level. Further, it aims at resolving the prevailing market issues and bringing value of transparency in progress of the segments.

The reorganization of the commercial vehicle business will be finished before public listing of the company on stock exchanges. This reorganization will aid the operations of commercial vehicles to get better financial strength and progress. It will be capable of handling situations of fluctuation in the truck operations.

Eight Segments in commercial vehicles
The executive director of Tata Motors, Girish Wagh stated that the Tata Motors has recognised eight segments in the commercial vehicles operation based on the customers and market sentiments. All of these segments are currently working on their own.

These 8 segments in the commercial vehicles business are buses and vans, international operations, AI services, truck business, smart mobility, small commercial vehicles, fleet edge, and non-vehicles business which consists of spares, services, and many more. In the truck operation, it includes intermediate and medium commercial vehicles and also heavy commercial vehicles. On the other hand, in small commercial vehicles comes vehicles such as pickups and mini trucks.
The company aims to focus on international business in its upcoming plan of action. It already has its presence in Africa and South Asia. It has a goal of expanding to regions such as the Middle East, ASEAN countries and North Africa. To achieve this goal, it focuses on creation of appropriate products according to needs and preference of the customers in these new areas. Apart from this, establishment of an efficient distribution and financing network for achieving the expansion goal of the company in international markets.

Challenges to the performance of Tata Motors
The company faced several challenges such as deduction in infrastructure expenditure, moderate economic growth, and uncertainty in the market due to elections resulting in fall in sales of bus and truck in the year of 2024.

Based on the Federations of Automobile Dealers Associations’ information, the company’s domestic sales declined to about 5.3 percent compared to its previous years’ sales of about 345,928 units. Also, its contribution in market share contracted to 34.43 percent compared to the previous record of 36.42 percent.

Impact of separate entities
In the last few years, Tata Motors published its financial performance separately for both Commercial vehicles and passenger vehicles operations. Dam Capital’s analyst, Mitul Shah stated that with the public listing of commercial vehicle business, an independent financial report with a separate balance sheet of the entity will lead to more information and better transparency in the functioning of the business. Further, he stated that in case the company gave progress about each segment in the commercial vehicles entity then it will aid investors to make better decisions about the valuation of the stocks and the company as well.

In present times, commercial business of the company has come across various challenges due to slowdown in the domestic commercial vehicle industry and also other challenges prevailing in the market. It steps towards creation of new models according to the needs and preference of consumers, trying new strategies and technologies will aid the company to tackle prevailing challenges and to bring robust improvement in the progress of the company in future.

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Impact of Trump 2.0 on Indian Equity Market

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MRF Q1 FY26: Revenue Up, Profits Down on Margin Pressures
Automobile News, Autos, Business, Equities, Markets - January 13, 2025

JLR Leads Tata Motors’ Q3FY2025 Recovery, But Domestic Challenges Persist

JLR Leads Tata Motors’ Q3FY2025 Recovery, But Domestic Challenges Persist

Jaguar Land Rover Ltd (JLR), the global subsidiary of Tata Motors Ltd, has shown signs of recovery in Q3FY2025, driven by improved wholesales and a better product mix. However, challenges in Tata Motors’ domestic business and uncertainties in the global auto market may limit the upside.

JLR: A Positive Turnaround in Q3FY2025
After a subdued performance in the first half of FY2025, JLR’s wholesales grew by 3% year-on-year (YoY) in Q3FY2025, reflecting an improvement in demand across key developed markets. While demand for premium and luxury vehicles remained tepid in retail channels, higher wholesale dispatches and an improved average selling price (ASP) indicate better revenue and profitability prospects.

Regionally, JLR’s performance was bolstered by strong demand in the US and parts of Western Europe. However, challenges persisted in the UK and China, where demand moderated. An increase in the contribution of JLR’s power brands to 70% of total sales, up from 64% six quarters ago, highlights a favorable shift towards premium models, which bodes well for margins.

Supply-side constraints that impacted JLR in earlier quarters have eased, as evidenced by reduced inventory levels and higher dispatches. Analysts anticipate a sequential improvement in JLR’s EBITDA margin for Q3FY2025, though it may still lag YoY levels. Importantly, the company remains on track to achieve £1 billion in free cash flows (FCF) for FY2025, supported by a net-cash balance sheet—a significant positive for Tata Motors’ consolidated financials.

The premium product mix in JLR’s sales continues to boost profitability prospects. As JLR’s power brands increasingly dominate the sales portfolio, the company benefits from higher margins. This trend, along with easing supply constraints, has led to improved inventory management. Analysts believe that these positive developments mark a crucial step in rebuilding investor confidence.

Domestic Business: A Mixed Bag
While JLR’s revival brings optimism, Tata Motors’ domestic operations face headwinds. The commercial vehicle (CV) segment has seen flat volume growth, reflecting a challenging demand environment. Meanwhile, Tata Motors’ passenger vehicle (PV) business has been losing market share, with electric vehicle (EV) sales failing to meet expectations amidst rising competition.

The domestic PV market is undergoing a significant transformation, with multiple new entrants and rising competition in the EV space. Tata Motors, despite its early lead in EVs, faces challenges in maintaining its growth momentum. Increased competition from both established players and startups is pressuring market share. Additionally, the company’s focus on expanding EV offerings has yet to deliver the desired results in terms of volume and profitability.

In the CV segment, economic factors such as rising interest rates and uneven demand recovery are limiting growth. Infrastructure development and government spending on large projects, which typically boost CV sales, have been slower than anticipated. Consequently, Tata Motors’ CV business has struggled to deliver strong results this quarter.

Consolidated Outlook: Recovery with Caution
Improved operating leverage in JLR and the standalone entity is expected to drive a recovery in Tata Motors’ Q3FY2025 consolidated profit margins and net profit compared to Q2FY2025. However, the path to sustainable growth will hinge on several factors:

Global Luxury Auto Market: The global premium car market’s recovery remains uneven, with concerns around whether discounts will be needed to stimulate demand in 2025. Prolonged economic uncertainties and geopolitical risks could further impact consumer sentiment in key markets like Europe and the US.

EV Ramp-Up: Both JLR and Tata Motors’ domestic EV businesses need to accelerate growth to capture emerging opportunities. JLR’s transition to electric models will require significant investments and strategic partnerships to ensure competitiveness in the evolving global market.

Macroeconomic Uncertainty: Changes in US policies on duties, taxes, and oil prices could impact demand dynamics in key markets. Rising energy costs and inflationary pressures could further complicate the operating environment for global automakers.

While JLR’s progress in Q3FY2025 is encouraging, sustaining this momentum will require consistent execution and strategic clarity. Tata Motors must address its domestic challenges while leveraging JLR’s global recovery to build a stronger consolidated performance. The coming quarters will be critical in determining whether Tata Motors can achieve sustainable growth and enhance shareholder value.

Tata Motors’ ability to navigate these challenges will define its performance in 2025 and beyond. Its strategic focus on premium vehicles, EV transition, and operational efficiency will be key to overcoming headwinds and delivering long-term growth. Investors and stakeholders will closely monitor the company’s efforts to address domestic market weaknesses while capitalizing on JLR’s improving trajectory in global markets.

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Upcoming Budget: Real estate Industry seeks Stamp duty cuts and revised home loan limits

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Hyundai Q3 FY2025 Sees 19% Profit Drop Amid Lower Sales and Rising Costs
Business, Equities, Market News, Markets - September 6, 2024

Hyundai Expands Hybrid Fleet, Unveils $3 Billion Share Buyback

Hyundai Expands Hybrid Fleet, Unveils $3 Billion Share Buyback

The major statements that Hyundai Motor Company, a leader in the global automobile industry, made recently are expected to change the company’s market posture and strategic direction. This South Korean automaker plans to increase the number of hybrid vehicles in its inventory by double in response to the growing demand for environmentally friendly cars. In keeping with its goal of increasing shareholder value, Hyundai has also announced a significant $3 billion share repurchase.

Hyundai’s move to increase the number of hybrid vehicles is an aspect of a larger plan to shift to more environmentally friendly transportation options. The business has been making significant investments in the creation of environmentally friendly automobiles, including as electric cars (EVs), hydrogen fuel cell vehicles, hybrids, and plug-in hybrids. As global pollution standards and growing environmental consciousness drive customer demand for more environmentally friendly cars, the company has strategically expanded its range of hybrid automobiles.

Since hybrids close the gap between conventional internal combustion engine vehicles and completely electric vehicles, Hyundai’s move towards hybrids is also a sensible one. Although the number of EVs on the road is increasing, hybrids provide a more affordable and convenient choice for those who aren’t quite ready to switch entirely to electric vehicles because of issues with cost, range, or charging infrastructure. Hyundai can extend its client base and foster brand loyalty as buyers shift towards more environmentally friendly alternatives by providing a wider range of hybrid automobiles.

Hyundai decided to focus on hybrid vehicles for a variety of strategic reasons. First off, hybrids are a technological advancement that blends the advantages of electric and gasoline-powered engines to provide lower emissions and increased fuel economy without the range anxiety that comes with electric vehicles. Because of this, hybrids are especially appealing in regions with underdeveloped charging infrastructure or where buyers are reluctant to switch to all-electric cars.

Moreover, growing the hybrid portfolio is consistent with Hyundai’s long-term goal of becoming a pioneer in environmentally friendly transportation. The corporation has set high standards for itself in terms of lowering its carbon footprint and growing the share of environmentally friendly automobiles in its lineup. Expanding the hybrid portfolio will help achieve these goals and comply with regulatory demands in important regions.

Hyundai has declared to repurchase $3 Billion shares the goal of this action is to increase earnings per share, give back surplus cash to shareholders, and raise the stock price of the firm as a whole. Hyundai’s repurchase program is a reflection of its sound financial standing and faith in its potential for future expansion.

Companies frequently utilise share buybacks as a way to reassure investors about their financial stability and prospects for expansion. Hyundai wants to lower the quantity of existing shares in the market and raise the value of the remaining shares by repurchasing its own shares. Because it frequently results in a rise in share price and a larger return on investment, this is very alluring to investors.

Hyundai’s $3 billion repurchase further demonstrates its dedication to provide value to its investors. The business has made large investments in innovation recently, notably in the areas of electric cars, driverless technologies, and intelligent transportation solutions. The repurchase serves as a means of assuring investors that despite the continuous difficulties facing the global car industry, the firm is still financially stable and that these investments should provide favourable returns.
 
Hyundai has taken a balanced approach to expansion and creating value for shareholders as seen by its two recent announcements: expanding its hybrid selection and carrying out a large share repurchase. By adding more environmentally friendly cars to its lineup, the corporation is, on the one hand, making an investment in the future and setting itself up to profit from the rising demand for sustainable transportation options. However, it is also demonstrating its faith in its strategic direction and sound financial position by implementing a sizable repurchase program as a means of rewarding its shareholders.

To sum up, Hyundai has shown a strong commitment to sustainability, innovation, and shareholder return with its recent decisions to double its hybrid portfolio and launch a $3 billion buyback. Hyundai is portraying itself as a forward-thinking leader prepared to meet the demands of a changing world as the automotive industry continues to evolve towards greener technology.

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Sugar Industry Fears New Norms May Stifle Growth and Innovation

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Maruti Suzuki's new facility faces short delay; 2025-26 production kick-off
Business, Equities, Market News, Markets - September 2, 2024

Maruti Suzuki's new facility faces short delay; 2025-26 production kick-off

Maruti Suzuki’s new facility faces short delay; 2025-26 production kick-off

Maruti Suzuki India Ltd, the country’s leading automobile manufacturer, is currently navigating a minor setback in its ambitious expansion plans. According to Chairman RC Bhargava, speaking at the company’s annual general meeting (AGM) on Tuesday, August 27, the automaker is experiencing a “small delay” in finalizing the site for its new manufacturing plant. This facility, once operational, is slated to have an impressive annual production capacity of 10 lakh (1 million) units.

Despite this temporary hurdle, Maruti Suzuki’s growth trajectory remains strong. The company’s upcoming plant at Kharkhoda in Haryana is proceeding as scheduled and is expected to commence production by 2025-26. This development was reported by the news agency PTI, which quoted Chairman Bhargava’s statements from the AGM.

In his address, Bhargava took the opportunity to reaffirm Maruti Suzuki’s unwavering commitment the small car and low-cost vehicle segment. This stance is particularly noteworthy given the recent fluctuations in market demand. Bhargava reiterated that the company’s strategy remains consistent, asserting, “We strongly believe that low-cost and compact cars are essential given our economic and social conditions. Our approach will not change due to a temporary drop in demand.”

This commitment to affordable transportation options is deeply rooted in Maruti Suzuki’s understanding of India’s unique socio-economic landscape. Bhargava elaborated on this point, highlighting that a significant portion of the population, particularly those who currently own scooters, aspire to own safer means of transport that can withstand India’s diverse and often challenging weather conditions. “India cannot just do with larger, more luxurious vehicles,” he asserted, underscoring the continued relevance and necessity of small cars in the Indian market.

Looking ahead, Maruti Suzuki remains optimistic about the future of the small car segment. The company anticipates a resurgence in demand within the next two years, demonstrating confidence in the long-term viability of this market segment despite short-term fluctuations.

The stock market responded positively to these developments and the company’s steadfast strategy. Maruti Suzuki’s shares closed 2.04 percent higher at ₹12,496.60 after Tuesday’s trading session, a notable increase from the previous market close of ₹12,246.55. This uptick in share price suggests investor confidence in the company’s direction and future prospects.

Elaborating on the company’s expansion plans, Bhargava said, “Our production expansion program is progressing as planned, with cars from the Kharkhoda plant set to boost our sales in FY25-26. Finalizing the location for a new one-million-unit expansion has been slightly delayed. We are doing our utmost to make a swift decision on this matter.” This suggests that, despite a minor delay in site selection for the new plant, to address the issue quickly the company is actively working.

It’s worth noting that Maruti Suzuki’s expansion plans are not limited to domestic production. In January 2024, Toshihiro Suzuki, President of Suzuki Motor Corporation (Maruti Suzuki’s global parent company), announced a significant investment of ₹35,000 crore to construct a second manufacturing facility in Gujarat. This new plant is also designed to have an annual production capacity of 10 lakh units, further solidifying Maruti Suzuki’s position as a manufacturing powerhouse in India’s automotive sector.

Chairman Bhargava also took the opportunity to commend the Indian government’s role in fostering a conducive environment for industrial growth. He expressed appreciation for the continuity in government policies aimed at accelerating economic growth with a focus on inclusivity and equity. This stability, according to Bhargava, instils confidence in the industry and supports sustained high growth. He highlighted the potential for collaboration between the industry and the government, noting that working together in an environment of trust and confidence could greatly support India’s ambition to become a developed nation by 2047.

The AGM also provided insights into Maruti Suzuki’s foray into the electric vehicle (EV) market. Bhargava revealed the company’s plans to introduce six EV models by the financial year 2030-31. In an exciting development for the near future, he announced that the first EV model from Maruti Suzuki is set to go into production and sale in the coming months. This initial offering will not only cater to the domestic market but will also be exported to Europe and Japan, marking a significant step in the company’s global EV strategy.

Addressing environmental concerns, Bhargava reaffirmed Maruti Suzuki’s commitment to achieving carbon neutrality and contributing to a cleaner environment. He explained that the company has adopted a comprehensive approach to meet these goals, drawing lessons from international experiences while simultaneously considering India’s unique resources and challenges. This balanced strategy demonstrates Maruti Suzuki’s dedication to sustainable practices that are tailored to the Indian context.

In conclusion, while Maruti Suzuki is facing a minor delay in its expansion plans, the company remains steadfast in its commitment to the small car segment, confident in its growth strategy, and proactive in its approach to future technologies like EVs. With strong government support and a clear vision for the future, Maruti Suzuki appears well-positioned to maintain its leadership in the Indian automotive market while also making strides in sustainable and innovative transportation solutions.

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Sugar Industry Fears New Norms May Stifle Growth and Innovation

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Mercedes-Benz to Boost Presence in India’s Growing Tier-2 Cities
Business, Equities, Market News, Markets - August 27, 2024

Mercedes-Benz to Boost Presence in India’s Growing Tier-2 Cities

Mercedes-Benz to Boost Presence in India’s Growing Tier-2 Cities

Mercedes-Benz, the renowned German luxury automaker, is set to broaden its presence in India, especially in tier-2 cities, in response to the increasing demand in these growing markets. The company has announced its intention to open ten new service centers in 2024, prioritizing the improvement of its after-sales network before focusing on expanding its sales operations.

Santosh Iyer, the Managing Director and CEO of Mercedes-Benz India, highlighted the importance of these smaller markets in a recent interview with The Hindu Businessline. He pointed out that some of these mini-markets are growing faster than in previous years. For example, cities like Raipur and Nashik are expected to show significant growth. However, Iyer made it clear that when it comes to total numbers, major metro cities like Mumbai and Delhi, along with their surrounding areas, remain the biggest contributors to the company’s growth.

Mercedes-Benz’s expansion plan for emerging markets prioritizes establishing service infrastructure before ramping up sales efforts. According to Iyer, the company aims to deepen its presence in mini-markets, believing that increased accessibility will naturally draw more customers. The primary focus in these regions will be on developing service capabilities rather than aggressive sales tactics. To support this strategy, the company intends to launch 10 new service facilities in mini-metros and smaller urban centers by the close of 2024.

In addition to enhancing its service network, Mercedes-Benz is looking into producing some accessories locally to better meet the needs and preferences of Indian consumers. The company is also planning a major upgrade to its retail experience. This year, 25 of its existing retail outlets will be transformed into luxury boutiques that offer an improved customer experience.

Iyer elaborated on this retail strategy by saying, “We have moved away from larger showroom formats to smaller, customer experience-focused formats. These new showrooms will feature design studios, private consultations for our top-end vehicle customers, and customization options for vehicles.” These boutiques are designed to offer a more personalized and luxurious shopping experience for Mercedes-Benz customers.

The company is also working on improving its after-sales service to enhance customer satisfaction. Previously, Mercedes-Benz offered a premium service where routine maintenance could be completed in just three hours. A step forward is now being taken by the company. Iyer explained that if automobiles under contract are delayed in the factory for other than three days, clients will be handed over with a courtesy automobile during this period. This policy shows Mercedes-Benz’s commitment to minimizing any inconvenience for its customers.

When it comes to new products, Mercedes-Benz is continuing to introduce new models to the Indian market. Recently the company launched the Mercedes-AMG GLC 43 4MATIC Coupé and the CLE 300 Cabriolet AMG. Mercedes-Benz is set to expand its luxury electric vehicle lineup in India with the launch of its first electric Maybach, the EQS 680 SUV, scheduled for September. This launch will further expand the company’s electric vehicle lineup in the country, aligning with the global trend toward electrification in the automotive industry.

Mercedes-Benz’s expansion plans in India reflect the growing importance of the Indian market in the company’s global strategy. By focusing on tier-2 cities and improving both its sales and service networks, Mercedes-Benz aims to take advantage of the increasing demand for luxury vehicles in these emerging markets. The company’s approach of establishing service centers before sales outlets in these areas shows a long-term commitment to customer satisfaction and brand building.

Additionally, the shift towards smaller, more experience-focused retail formats and the localization of accessories demonstrate Mercedes-Benz’s efforts to tailor its offerings to the Indian market. These initiatives, combined with the introduction of new models and the expansion of its electric vehicle lineup, position Mercedes-Benz to strengthen its presence in India’s luxury car market.

As the company continues to navigate the changing landscape of the Indian automotive industry, its focus on customer experience, service quality, and market expansion is likely to play a key role in maintaining its position as a leading luxury car brand in the country. The success of these initiatives could set an example for other luxury automakers looking to expand their presence in India’s tier-2 cities and beyond

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