Maruti Suzuki gains on launch of AVAS system in Grand Vitara

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July 18, 2023
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In the last one year, Maruti has launched three SUV models to compete with majors such as Tata Motors, Hyundai, and Mahindra and Mahindra. The new additions are Fronx, Jimny, and Invicto.

Maruti Suzuki India Ltd shares were up 1 percent at Rs 9,766 on July 18 at 9:30 am, with 5 lakh shares changing hands on the NSE. The company announced the addition of the Acoustic Vehicle Alerting System (AVAS) for the intelligent electric hybrid variants of the Grand Vitara, its premium sports utility vehicle (SUV).

Following the update, the country’s leading manufacturer said the price of Grand Vitara variants will increase by Rs 4,000.

This technology is designed to help keep drivers and pedestrians safe by alerting them about the presence of a vehicle, Maruti Suzuki India said in a regulatory filing on July 17.

The system works by emitting a low-level alert sound that can be heard up to five feet away from the vehicle, giving pedestrians and other nearby drivers a heads-up that a vehicle is nearby.

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What analysts are saying

The stock rallied around 23 percent from lows of the market to an all-time high of Rs 10,000 by early July and now could be consolidating. “For a long time, Maruti was about volume growth. That story is changing. Maruti’s earnings growth will now be driven by better margins as it sells more of its high models. The stock has underperformed for a long time, and despite the recent run up, valuations are not pricey,” Siddharth Bharma, research head at Religare Broking, told Moneycontrol.

S-CNG to drive sales

Recently, the company launched an S-compressed natural gas (S-CNG) variant of its newly-launched Fronx, taking the total tally of S-CNG models to 15. As per a regulatory filing on July 12, over 26 percent of Maruti’s total sales come from the S-CNG models.

Speaking about the launch, Senior Executive Officer Shashank Srivastava said that the company is confident that the FRONX S-CNG will increase the share of S-CNG cars in overall sales, and further strengthen Martui’s green mobility portfolio.

Also read: Can Maruti’ SUV drive trigger renewed optimism in the stock?

In the last one year, Maruti has launched three SUV models to compete with majors such as Tata Motors, Hyundai, and Mahindra and Mahindra. The new additions are Fronx, Jimny, and Invicto.

In the month of June, sales of utility vehicles such as Brezza, Grand Vitara, and Ertiga showed an impressive increase, more than doubling to reach 43,404 units. This is in comparison to the 18,860 vehicles sold in the same month of the previous year.

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