Maruti Suzuki launched five products back-to-back including Ertiga, Ciaz, Brezza, Baleno and S-Cross with a success ratio of over 80%. Brokerage house JM Financial said in a note that the previous product cycle ran effectively on important parameters of both market share and margins.
“The major drawback has been in terms of lack of contemporary features, limited UV portfolio and absence of diesel variants” maruti suzuki, The note added that whether the introduction of hybrid technology will solve the diesel problem will be seen over time.
Looking at the list of features in Baleno 2022, the brokerage said that it has got the same relaxation today and reiterated its buy stance on Maruti Suzuki shares with a fair price (target price) of March 2023. 9,500 (from 8,100).
with him Baleno 2022However, the auto maker seems to have reworked its DNA and is looking to fit in for young buyers. Apart from high fuel-efficiency (the Baleno 2022 is at least 10% more fuel-efficient than the closest competition), the Baleno incorporates class-leading features in both comfort and safety, while maintaining its competitive edge on price ,” the note added.
In addition, significant fuel price inflation (a growth of over 20% in CY21) and the government’s push towards increasing CNG distribution across the country has resulted in better offtake of CNG-powered vehicles, according to JM Financial. Maruti Suzuki dominates the CNG segment with over 85% market share.
“Maruti Suzuki’s traditional strength has been fuel efficiency. However, with the passage of time, being ‘fuel efficient’ and ‘utilitarian’ is not enough. An increasing segment of customers demands new age features, security etc. In short, a ‘complete package’,” JM Financial’s note added.
The views and recommendations given above are those of individual analysts or broking companies and not of Mint.
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