Maruti bets on small-car surge

Maruti Suzuki India Ltd’s latest management commentary has spurred hopes of brighter days after the September quarter (Q2FY26).

- Ananya Roy [e-mail]

The company’s exports volumes jumped 42% year-on-year, supporting Q2 growth even as domestic sales fell 5% as customers deferred purchases since the goods and services tax (GST 2.0) announcement in August. But GST 2.0-powered festive sales since 22 September, when the new rates came into effect, promise to bring back volume growth. GST rates on small cars have been slashed from 29-31% (including cess) to 18% and this should bode well for India’s leading small car maker Maruti, whose shares are up 25% since mid-August.