Maruti Suzuki shares rise 4% as automaker plans price hike up in January

Maruti Suzuki India, the country's largest automaker, has announced plans to increase vehicle prices by up to four percent across its lineup starting January 2025. The company stated that the decision comes in response to rising input costs and operational expenses, which have made a price revision necessary.

"The exact increase will vary depending on the model. While we strive to optimize costs, some portion of the added burden must be shared with the market," Maruti Suzuki explained in its statement.

Stock soars on price hike news

Following the announcement, Maruti Suzuki shares surged 4 per cent during Friday's trading, reaching a high of Rs 11,785 before closing at Rs 11,318, up 1.22 per cent. The stock has delivered a stellar performance in 2024, gaining 20 per cent year-to-date.

Market outlook remains optimistic

Analysts project steady growth for Maruti Suzuki, citing a 6 per cent compound annual growth rate (CAGR) in volumes between FY24 and FY27. Anand Rathi expects domestic volumes to grow 5 per cent during this period, supported by rising income levels, recovering first-time buyers, robust rural demand, and new launches such as the Dzire, eVX, and MPV models.

The brokerage has a "buy" recommendation on Maruti Suzuki, with a target price of Rs 13,800.

Recent financial performance

Maruti Suzuki reported a standalone net profit of Rs 3,069 crore in the second quarter of FY25, a decline of 17 per cent year-on-year. Revenue from operations for the quarter stood at Rs 37,203 crore, reflecting a marginal increase of 0.37 per cent.

With its strong market position, promising pipeline, and expected price hikes, Maruti Suzuki appears well-placed to navigate current challenges and sustain growth in the coming years.