Maruti Suzuki India Ltd. (MSIL) is a subsidiary of Suzuki Motor Corporation of Japan.
It is engaged in the business of manufacturing and selling motor vehicles, components and spare parts. It is a leading passenger car manufacturer in India. It also facilitates pre-owned car sales, fleet management and car financing. MSIL boasts a vast product portfolio of 16 car models with more than 150 variants. Its product range extends from entry level small cars such as Alto 800 to the luxury sedan Ciaz.
Industry Overview
FY18-19 was an arduous year for the domestic passenger vehicle industry. Its growth came down to 2.7 per cent in FY19, which is the lowest growth in the last 5 years. This is because the passive demand environment which prevailed in Q3FY19 wound its way into the fourth quarter as well. The auto industry is set to experience several regulations as we move into FY2020. These include the introduction of the anti-locking braking system (ABS) as well as the implementation of the second phase of safety protocols. The BS-VI regulation, which will be effective from April 1, 2020, will be applicable on registration of vehicles and not on production. This implies that BS-IV specification vehicles cannot be sold from April 1, 2020 and any unsold inventory beyond the said date will be unserviceable. Therefore, this calls for meticulous volume planning. These regulations will result in price rise, which could affect the demand, particularly that of price sensitive entry level cars. Thus, it may so happen that potential customers may prepone the purchase of vehicles in anticipation of price hikes. On the other hand, some customers may have a preference for technologically advanced vehicles, which will leave the pace of buying unaltered. The Society of Indian Automobile Manufacturers (SIAM) expects the automobile industry to grow by 3 to 5 per cent in FY20E. The auto industry will be required to comply with improved safety regulations from October 2019.
Financial and Operating Performance
Denne historien er fra May 27, 2019-utgaven av Dalal Street Investment Journal.
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Denne historien er fra May 27, 2019-utgaven av Dalal Street Investment Journal.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
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How To Invest In An Ageing Bull Market
Bull rallies (periods when stock prices rise) and bear declines (periods when stock prices fall) are natural parts of stock market cycles, but they don't follow a fixed timeline.
Should You Entrust All Your Money To A Single AMC?
If you are a market participant, you have probably heard the quote 'don't put all your eggs in one basket', which suggests diversification. Investors often focus on diversifying across categories like large-cap, mid-cap and small-cap, but they may unintentionally overlook diversification across different AMCs. The question arises: is AMC-wise diversification really necessary? Rakesh Deshmukh takes a closer look at this scenario
Wild Swings Engulf Global Equities
U.S. stock markets experienced significant volatility. An early-week rally pushed the markets to new highs, but this momentum faded, primarily due to weaknesses in the tech sector. The major indices had a mixed finish with, S&P 500 and Nasdaq closed lower, while the Dow recorded a notable gain.
U.S. Elections and China's Economy Hamper Commodities
Commodity markets experienced selling pressure in the last fortnight, driven by uncertainties surrounding the upcoming U.S. presidential elections, concerns about the Chinese economy, and increased agricultural production in Brazil.
Wealth Building For Retirement Through Mutual Funds
Retirement is one of the most crucial and lifechanging phases. It marks a period where maintaining your lifestyle becomes paramount even though your regular income stops.
Mastering Investment with Information Ratio
Information Ratio helps in navigating the complexities of the investment landscape by assessing an active fund manager's performance. And though it has its limitations, it remains an essential part of the finance industry. The article explains what Information Ratio is and how investors can use it as another tool
Plan To Be Financially Independent
Each of us aspires to be financially independent as it ensures having enough resources to be self-sufficient and control our finances.
❝Technology is the new game-changer"
With a new breed of young investors entering the financial markets, it is the use of technology that is increasingly playing a major role in how investments are done and tracked. Anand Radhakrishnan, Managing Director, Sundaram Mutual Fund, shares his opinion about how this factor is turning into a significant tool and how it will shape the strategies of his company
What If Donald Trumps?
The potential election of Donald Trump as president in the U.S. carries significant implications for the Indian equity market. It could lead to changes in the global trade dynamics, in particular affecting the Indian IT sector while also raising inflation levels and leading to yet another revision in the visa programme for Indians who want to work in the US. The article takes a closer look at what may lie in store
Sectoral Gains Make A Mark
Benchmark indices continued their uptrend, reaching new record highs, although the pace has slowed as the broader markets faced selling pressures
