Shares of India’s largest carmaker, Maruti Suzuki, continued their impressive surge on Tuesday, touching a new intra-day high of Rs 15,384, up nearly 1%. The stock has soared 41% so far in 2025, marking its strongest year-on-year performance since 2017. With this momentum, Maruti Suzuki is now on the verge of achieving a market capitalization of Rs 5 lakh crore.
Currently, the company’s market cap stands at Rs 4.8 lakh crore, just 0.4% shy of the Rs 5 lakh crore milestone. After crossing the Rs 4 lakh crore mark in March 2024, Maruti has added approximately Rs 80,000 crore to its market value over 16 months. As per BSE data, only 12 companies in India currently have a market value exceeding Rs 5 lakh crore.
GST Cut Boosts Prospects
The recent reduction in GST rates by the central government has provided relief across the auto sector. For small cars—petrol models with engine capacity under 1,200 cc and diesel models under 1,500 cc, measuring less than 4 meters—the GST rate has been lowered from 28% to 18%. Analysts believe Maruti Suzuki will benefit the most from this move, as it could make budget-friendly models more attractive to buyers.
Sales of small cars, which make up 68% of Maruti’s domestic sales, have slowed in recent years due to a shift in consumer preference toward larger, feature-rich SUVs. However, the GST cut is expected to revive demand in this segment.
Expected Price Reductions
In line with the tax cut, Maruti Suzuki is likely to revise its prices. Chairman R.C. Bhargava indicated that the Alto could become cheaper by around Rs 45,000, while WagonR prices may be reduced by Rs 60,000-70,000. Other automakers have also announced price cuts to pass on the benefits of GST reductions to customers.
Despite the positive outlook, Maruti’s sales in August remained slightly muted, falling 0.6% year-on-year to 1,80,683 units due to weak demand for small cars.
Outlook
With small cars accounting for the majority of its domestic sales, Maruti Suzuki is well-positioned to benefit from the GST cut. If the trend continues, reaching a market capitalization of Rs 5 lakh crore could be just around the corner.
