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Maruti's EV entry could pay off

Mint Mumbai

August 29, 2025

The Maruti Suzuki India Ltd stock made another high of 14,895 on the NSE on Thursday after it finally entered the electric car manufacturing race.

- Manish Joshi

While some of the gains may have been in anticipation of the inauguration of its electric vehicle plant in Gujarat, the stock has rallied by 14% since 14 August on potential cuts in the goods and services tax rates.

Electric passenger vehicle sales contributed only about 3% of total car sales in India in the June quarter (Q1 of FY26), according to the Society of Indian Automobile Manufacturers' data on dispatches from factories to dealers.

So, despite the low penetration in India, why is the electric vehicle plant an important milestone for Maruti? The EV plant is the first one for both Maruti and its Japanese parent company Suzuki Motor Corp.

The plant is proposed to be the global hub for manufacturing electric cars to be sold in over 100 countries including Japan. The export potential is huge.

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