Maruti becomes world’s 8th most valuable auto company: Elon Musk’s Tesla retains top spot

Suzuki has bagged this position by surpassing auto giants like Ford Motor, General Motors, and Volkswagen, according to the Economic Times. Maruti India has also surpassed its Japanese parent Suzuki Motor Corp (₹2.57 lakh crore) in market value. Elon Musk's Tesla topped the list at $1.47 trillion, or ₹130.38 lakh crore.

The ranking by Market Value (in ₹ Lakh Crore):

Maruti Suzuki holds more than 60% share in India's small car segment. The company has benefited from the newly implemented GST reforms. The new GST rules, implemented on September 22, have reduced the tax on small cars, making Maruti cars more affordable. The company has reduced the prices of several of its cars by up to ₹1.30 lakh.

Maruti's Senior Executive Officer (Marketing and Sales) Partho Banerjee said, "A reduction of 10.6-20% in Alto K10, 12.6-24% in S-Presso, 8.6-17% in Celerio, and 8.7-14% in Wagon R has been made. This is a double bonanza for customers during the festive season."

Maruti's Shares Rise 25%

Prime Minister Narendra Modi announced the next generation of GST reforms on August 15, after which Maruti's shares have risen by 25%. On August 14, Maruti's share was at ₹12,936, while on September 25, it reached ₹16,236. During this period, the Nifty Auto Index rose by about 11%, but Maruti performed much better than this.

Maruti's Success

The major reason for Maruti Suzuki's success is its focus on small cars and its strong market hold in India. The new GST rules have made small cars more affordable, increasing the number of customers.

Along with the increased demand during the festive season, the company's strategy has taken its shares to new heights. This achievement of Maruti has not only enhanced the reputation of the Indian automobile industry but also demonstrated that with the right policy and strategy, Indian companies can establish their dominance at the global level.

There has been a tremendous surge in Maruti's sales. The company is receiving 15,000 bookings every day. Especially on the first day of Navratri, September 22, Maruti delivered 30,000 cars, which reflects the demand for small cars.