For Maruti Suzuki, market share continues to be a weak spot

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₹15 lakh segment, where few investors were so far doubting the company’s “right to win"," said analysts at HDFC Securities in a 1 August report. Having said that, rising competition is a concern especially when Maruti has lost market share.

In Q1, Maruti’s market share was 41.6%, lower than 45.4% in Q1FY22. In past five quarters, company’s market share has been range-bound.

“We believe the company will find it challenging to regain lost market share in the domestic passenger vehicle segment and is expected to remain around 42% over FY2024-26E, as there are no mass market launches after Fronx and newer launches from competition across the CNG, micro-SUV and mid-size SUV segments," points out Kotak Institutional Equities. So far in 2023, Maruti’s shares have risen nearly 16%.

Hereon, consistent volume growth driven by new launches will aid investor sentiment. But whether this translates into meaningful market share gains remains to be seen.Get the best recommendations on Stocks, Mutual Funds and more based on your Risk profile!