Shares of Maruti Suzuki India Ltd surged 1.83% to trade at ₹11,375 on NSE as of 11:44 am, following a report by CLSA highlighting strong retail growth in the auto sector during the recent festive season. The growth was largely attributed to an inventory correction, with dealers reporting a significant boost in sales for both two-wheelers (2Ws) and passenger vehicles (PVs) in the second half of October.
Key Highlights:
- Festive Season Boost: The recent festive period provided a strong lift to auto sales, with inventory levels now normalized and discount levels remaining steady since September 2024.
- Positive Outlook for FY25: Dealers are optimistic about double-digit growth for two-wheelers in FY25, along with mid-single-digit growth for passenger vehicles.
- Marriage Season Demand: The upcoming marriage season in November-December is anticipated to further support retail sales in both 2W and PV segments.
CLSA has identified Mahindra & Mahindra (M&M) and Maruti as its top picks in the auto sector, based on the positive market sentiment and stable discounting trends.
This uptick in Maruti Suzuki shares reflects investor optimism in the Indian auto market, fueled by robust festive demand and favorable conditions heading into the marriage season.
