Maruti Suzuki India shares dropped 2% after the Society of Indian Automobile Manufacturers (SIAM) projected muted growth of 1-4% in the passenger vehicle (PV) segment for FY26. India, the world’s third-largest car market, continues to witness sluggish demand, especially in the small car segment, due to affordability concerns and a high base effect.
At the SIAM Looking Ahead Conclave, key automakers shared their growth forecasts for the upcoming fiscal year. Maruti Suzuki and Hyundai anticipate a modest 1-1.5% increase, while Mahindra & Mahindra, Kia, and Tata Motors project growth in the range of 1-4%. Despite the subdued overall demand, strong sales of utility vehicles remain a key driver of market expansion.
The slowdown in small car sales is attributed to rising costs that outpace income growth, making these vehicles less affordable for first-time buyers transitioning from two-wheelers. Inflation and challenges in the IT sector have further dampened consumer sentiment. As a result, first-time buyer share has declined to approximately 40%, with India’s car penetration rate remaining low at 34 vehicles per 1,000 people.
Maruti Suzuki India’s stock opened at ₹12,650.00, reaching a high of ₹12,650.00 and a low of ₹12,380.00 during the trading session. The stock’s 52-week high stands at ₹13,680.00, while its 52-week low is ₹10,725.00.
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