Carmaker Maruti Suzuki India has launched its all-new Brezza with latest advanced features and price tag. 7.99 lakh (ex-showroom) as it seeks to consolidate its presence to consolidate its leadership position in the SUV segment. It has garnered over 45k bookings in the first eight days since the booking started.
New Maruti Brezza In the UVC category, Hyundai Venue will compete with Kia Sonet, Tata Nexon, M&M XUV300 etc. The UVC segment accounted for 54% (~40% including MPV) of SUV volumes for the industry for FY22.
“Strong demand, improving semiconductor supply, controlling commodity inflation, and a favorable foreign exchange rate will aid in a margin recovery. Strong demand and strong both in market share (+600bp) and margin (+550bp) in FY22-24E The recovery, will drive a 66% CAGR in EPS,” brokerage Motilal Oswal said in a note.
Domestic brokerage and research firm retains its buy rating shares of maruti suzuki with a target price of 10,000 per share. The auto stock is up more than 11% so far in 2022 (YTD).
The Brezza is the first of several new platforms and SUV launches are planned in the next two years. The note added that given that the Brezza was the oldest model in the hyper-competitive UVC segment, this platform upgrade was timely.
“This will help MSIL recover part of its lost market share in this important SUV segment. We are manufacturing 15 thousand units in average monthly domestic volume (including supplies to Toyota) in FY 2012, up from 11.7 thousand units in FY 2012.”
The company has invested with its vendor partners 7.6 b on the development of the new Brezza. Management indicated a change in consumer buying behavior towards vehicle purchases. As part of the company’s vision to provide ‘Joy of Mobility’ to more and more people, the automaker said it will strengthen its presence across all segments, with a special focus on the SUV portfolio.
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