Maruti Suzuki is India’s largest Passenger Car manufacturer, with over 50% market share and the widest sales and service network. It is also the market leader in the A2 segment – the largest segment in passenger cars. Maruti has successfully held on to its position despite competition till now However, competition is set to become fierce in the near future. Players like Toyota, Ford etc are gearing up to launch cars in the A2 segment in the Indian market. Moreover, Tata Motors, with the launch of Nano – priced significantly below M800, has taken over the tag of ‘entry-level-car-maker’. Besides capacity constraints, implementation of Euro-IV emission norms, removal of government stimulus, increasing interest rates, and the withdrawal of the European incentive scheme pose a further threat.
- Will Maruti remain a winner in the future?
- At its current price, what should be your investment decision?