--- title: "India's Maruti Suzuki adds $1.24 billion in market value as small cars get popular" type: "News" locale: "en" url: "https://longbridge.com/en/news/284545607.md" description: "Shares of Maruti Suzuki India rose 5.1%, adding $1.24 billion in market value, driven by strong demand for small cars. The company reported a profit of $379 million for Q1, below estimates, due to rising raw material costs. Despite challenges, Maruti plans to expand manufacturing capacity by 500,000 units with a $1.48 billion investment. Analysts expect 10% volume growth, although margin pressures from commodity prices remain a concern. Year-to-date, the stock is down 20.6%, the worst performer on the auto index." datetime: "2026-04-29T10:19:17.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/284545607.md) - [en](https://longbridge.com/en/news/284545607.md) - [zh-HK](https://longbridge.com/zh-HK/news/284545607.md) --- # India's Maruti Suzuki adds $1.24 billion in market value as small cars get popular By Kashish Tandon April 29 (Reuters) - Shares of Maruti Suzuki India gained as much as 5.1% on Wednesday as investors looked past near-term margin pressures to bet on strong ‌demand for its small cars and a brighter volume outlook. The stock settled 2.8% higher and ‌added 117.27 billion rupees ($1.24 billion) in market value It was the top boost on the auto index, which ended 1.2% higher. India's ​top carmaker reported profit of 35.91 billion rupees ($379 million) for the quarter ended March 31 on Tuesday, missing analysts' estimates of 41.38 billion rupees. The decline was driven by higher raw material costs and a sharp fall in other income, but the carmaker flagged strong demand momentum for its small cars despite mounting risks ‌from the Iran war. "Small cars account ⁠for about 130,000 of the 190,000 pending orders," Chairman RC Bhargava said. The company also outlined plans to expand manufacturing capacity by about 500,000 units in the ⁠current fiscal year with an investment of $1.48 billion. The stock rebounded from Tuesday's losses as analysts pointed to a strong order book, leaner dealer inventories and easing discounts as signs of resilient underlying demand. While demand could soften ​in the ​coming quarters, consumer appetite was strong till March, ​reflected in low inventories, offering near-term support ‌despite mounting cost pressures, said Gaurav Vangaal, an analyst at S&P Global Mobility. CLSA described the results as "resilient amidst odds," saying Maruti managed to limit the impact of commodity inflation to around 80 basis points quarter-on-quarter through product mix improvements, tighter vendor management and lower discounts. The carmaker also forecast about 10% volume growth in the current fiscal, which analysts said reinforced confidence in sustained demand. Elara analysts said Maruti continues ‌to expect buoyant demand, with its volumes expected to ​grow by 10% in fiscal 2027, and very limited impact ​of war on demand. However, macroeconomic factors ​with elevated commodity costs remain challenging, they said. However, BofA Global Research struck a ‌more cautionary note, warning that margin headwinds from ​elevated commodity prices and ​the commissioning of new capacity could persist. "While volume growth looks achievable, margins remain a sore point for now," BofA said. HSBC and Investec also flagged resilient demand but warned that margin pressures ​could cap near-term upside unless ‌pricing action is taken. Year-to-date, the stock is down 20.6% and remains the worst performer ​on the auto index, which is down 7.5%. ($1 = 94.8450 Indian rupees) (Reporting by Kashish Tandon and ​Pranav Kashyap in Bengaluru; Editing by Sumana Nandy) ### Related Stocks - [6785.JP](https://longbridge.com/en/quote/6785.JP.md) - [SZKMY.US](https://longbridge.com/en/quote/SZKMY.US.md) - [7269.JP](https://longbridge.com/en/quote/7269.JP.md) - [SPGI.US](https://longbridge.com/en/quote/SPGI.US.md) - [BAC.US](https://longbridge.com/en/quote/BAC.US.md) - [00005.HK](https://longbridge.com/en/quote/00005.HK.md) - [HSBA.UK](https://longbridge.com/en/quote/HSBA.UK.md) - [HSBC.US](https://longbridge.com/en/quote/HSBC.US.md) - [INVP.UK](https://longbridge.com/en/quote/INVP.UK.md) - [BAC-Q.US](https://longbridge.com/en/quote/BAC-Q.US.md) - [BML-L.US](https://longbridge.com/en/quote/BML-L.US.md) - [BAC-L.US](https://longbridge.com/en/quote/BAC-L.US.md) - [BAC-K.US](https://longbridge.com/en/quote/BAC-K.US.md) - [BML-H.US](https://longbridge.com/en/quote/BML-H.US.md) - [BAC-N.US](https://longbridge.com/en/quote/BAC-N.US.md) - [BAC-E.US](https://longbridge.com/en/quote/BAC-E.US.md) - [MER-K.US](https://longbridge.com/en/quote/MER-K.US.md) - [BAC-O.US](https://longbridge.com/en/quote/BAC-O.US.md) - [BML-G.US](https://longbridge.com/en/quote/BML-G.US.md) - [BAC-M.US](https://longbridge.com/en/quote/BAC-M.US.md) - [BAC-B.US](https://longbridge.com/en/quote/BAC-B.US.md) - [BML-J.US](https://longbridge.com/en/quote/BML-J.US.md) - [BAC-S.US](https://longbridge.com/en/quote/BAC-S.US.md) - [BAC-P.US](https://longbridge.com/en/quote/BAC-P.US.md) - [8648.JP](https://longbridge.com/en/quote/8648.JP.md) - [DTIW.SG](https://longbridge.com/en/quote/DTIW.SG.md) ## Related News & Research - [Maruti Suzuki fast-tracks production to clear backlog of 200K orders](https://longbridge.com/en/news/283390654.md) - [IPL 2026: Kuldip, Gleeson named injury replacements for Khaleel-Thushara](https://longbridge.com/en/news/286585285.md) - [Women under 35 led mutual fund investments in FY26, shows data](https://longbridge.com/en/news/286945674.md) - [Quantum Advances European Strategy Through EU Raw Materials Mechanism](https://longbridge.com/en/news/286918199.md) - [METLEN’s strategic investment in gallium production receives ministerial approval](https://longbridge.com/en/news/286802278.md)