Goldman Sachs has upgraded Maruti Suzuki to a buy rating and raised its target price to ₹18,900, pointing to a favourable position in the upcoming auto demand cycle and a series of growth catalysts. The brokerage said the government’s GST rationalisation and recent price changes could spark a recovery in the entry-level car segment, which has been under pressure for several years.
Maruti is also set to resume new model launches after a gap of two and a half years, starting with the Victoris SUV and the eVitara electric SUV. These launches, combined with the broader pickup in small car demand, are expected to strengthen the company’s market positioning.
The brokerage added that Maruti faces lower carbon compliance risks compared to peers ahead of the CAFE 3 emission regime in FY28. It forecasts volume growth of 5%, 12%, and 9% over FY26, FY27, and FY28, respectively, outpacing the industry’s expected growth of 4%, 8%, and 9%.
Reflecting this improved outlook, Goldman Sachs raised its FY26–FY28 earnings estimates by up to 12%. It said Maruti is better placed than its peers to capture the next wave of auto sector growth.
Disclaimer: The views and recommendations made in this article are those of Goldman Sachs. This article does not constitute investment advice. Investors should consult their financial advisors before making any investment decisions.
