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News Topical, Digital Desk : Maruti Suzuki India has achieved a new record. The largest company in India's auto sector has now joined the list of the world's 10 largest auto companies in terms of market capitalization. Maruti Suzuki India has now become the 8th largest auto company in the world. With a market capitalization of approximately $56 billion, Maruti Suzuki India has surpassed Ford ($46.3 billion), General Motors ($57.1 billion), and Volkswagen ($55.7 billion). The company now ranks behind Tesla ($1.47 trillion), Toyota ($314 billion), BYD ($133 billion), Ferrari ($92.7 billion), BMW ($61.3 billion), and Mercedes-Benz ($59.8 billion).
Why such growth in Maruti Suzuki's market cap?
Government policy reforms to boost consumption and strong demand for small cars in India have been the biggest contributors. The new GST regime, implemented on September 22nd, has particularly benefited small car companies, where Maruti Suzuki holds the largest market share. The reduced tax led to lower vehicle prices, leading to a surge in sales.
Strong domestic position. Maruti Suzuki India generates over 60% of its sales from the compact and entry-level segments, which are its main sales base in India. Its continued leadership in these categories has boosted investor confidence. As a result, the company's stock rose from ₹12,936 on August 14 to ₹16,236 on September 25. This represents a growth of 25.5% in just over a month.
Investor confidence: Investor sentiment improved after Prime Minister Narendra Modi announced these direct tax reforms on Independence Day. According to brokerage data, foreign portfolio investors (FPIs) have increased their investments in Indian auto stocks.
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