MSIL News: The choice of car buyers in India has changed in the last few days. In fact, people are enjoying driving SUVs on the road due to the coronavirus crisis after the bad condition of the roads and the rush to go on holidays with the family on it.
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maruti rating down
Earlier this week, rating agency CLSA downgraded the rating of Maruti. Earlier, Maruti shares were advised to underperform, which is now being advised to sell. In fact, Maruti’s share in the country’s profitable SUV market has been steadily declining and due to this, there is a possibility of weakness in its shares.
Maruti car not in SUV
CLSA said in a note, “Maruti Suzuki may see a reduction of 600 basis points in its share in the domestic passenger vehicle industry in the period from FY 2020 to 2022. The SUV segment of passenger vehicles in India is witnessing rapid growth and Maruti doesn’t have a strong presence in this business.”
SUV sales boom
CLSA has said that the domestic passenger vehicle industry has accounted for 39% of the sales of the SUV segment as of October 2022. It was 32 per cent in FY20. Maruti’s market share has decreased by 560 basis points during this period.
Six new SUVs to come
Recently, Maruti had told in a presentation with its dealers that Maruti Suzuki is preparing to introduce 4 new options in the SUV segment. With this, Maruti Suzuki now plans to have at least six products in its portfolio in terms of utility vehicles. Utility vehicles like Ertiga will also continue to be in its portfolio. In fact Maruti Suzuki is trying to offer an SUV at a price difference of every ₹50,000.
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