Maruti Suzuki’s shares declined in the early trading session of March 21 following Morgan Stanley’s ‘overweight’ call, fueled by the expected announcement of a duty cut on hybrid car models.
Minister for Road Transport & Highway, Nitin Gadkari floated a plan to cut the GST on hybrid cars from 48 per cent to 12 per cent at the Rising Bharat Summit in New Delhi on March 19, which would only benefit the taxi.
There’s a Rs 11228 goal in place, but Maruti shares exceeded the Rs 12000 mark for the first time on March 20, making the mark irrelevant. As the country moves toward electrification, there is a clear disparity in the way cars are taxed: on the one hand, EVs pay a mere 5% GST, and on the other hand, hybrid cars pay a 48% GST even though they are more eco-friendly than traditional gas-guzzlers and diesel-runners.
According to CLI SAS, Maruti currently dominates the CNG PV segment, holding 72 per cent of the pie. Analysts predict an increase in the market share of CNG PVs from 15% in FY24 to 22% in FY30, with specific companies like Maruti Suzuki and Tata Motors standing to benefit. This year, the market capitalization of Maruti Suzuki has increased by 16%; the share price was trading at ₹11,934.80. at 10:30 am.
