New Delhi. JM Financial Institutional Securities said in a research that after two consecutive years of market share decline, Maruti Suzuki is on the cusp of market share improvement due to new launches.
The recently introduced Jimny, FrontX and Invicto have received good response from the customers. There is a huge order book for Brezza, GV, Jimny, FrontX, Invicto, Ertiga.
The report said that with the recent SUV launches, the company has regained the leadership position in the SUV segment during the first quarter of the current financial year.
The company indicated that chip supply has significantly improved and it expects supplies to normalize going forward. Dealer inventories are at four-week normal levels, the report said.
Maruti Suzuki increased UV market share to 23 percent. Overall, the company is bullish on the sales momentum due to good demand for new/recently launched SUVs. Overall, the PV industry is expected to grow between 5-7 per cent in FY2014 and MSIL is expected to lead the industry, the report said.
With the introduction of Jimny, FrontX and Invicto, MSIL intends to further strengthen its presence in the B-segment. That said, the benefit of rich portfolio mix, softening commodity costs and higher operating leverage are expected to help margins grow going forward.
Steady growth in household PV and favorable product lifecycle bode well for MSIL. We expect market share growth and margin improvement in FY2014 due to improved supply, favorable product lifecycle, mix and operating leverage, Motilal Oswal Financial Services said in a report.
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Web Title-Maruti Suzuki on the cusp of market share recovery after two years of decline