Mumbai, Jan 7, 2026, 14:17 IST
Maruti Suzuki India shares slid on Wednesday, extending losses as investors weighed an HSBC upgrade that came with a warning on profit margins. The stock was down about 3.8% at 16,637 rupees by 2:11 p.m. IST, after touching a low of 16,524, according to market data compiled by Moneycontrol. 1
HSBC raised its target price on Maruti to 18,500 rupees from 17,000 and maintained a “buy” rating, saying market share had normalised around 40% and demand looked firm. The broker said anything below a 10% EBIT margin — earnings before interest and tax, a measure of operating profit — could disappoint, and pointed to commodity-price swings, including copper, as a near-term risk. 2
The call comes as India’s auto market shows fresh traction after tax cuts and discounting. Retail auto sales rose about 15% in December from a year earlier, FADA said, after India cut the tax rate on some SUVs and on small cars and two-wheelers; Maruti also reported nearly a 50% jump in small-car sales to dealers. 3
Competition remains a central worry as the market shifts toward sport-utility vehicles (SUVs). Maruti’s share of passenger-vehicle registrations fell to 39.91% in 2025 as Mahindra & Mahindra and Tata Motors gained ground, and the company has said it wants to rebuild to 50% by 2030 with new model launches, Moneycontrol reported. A Maruti spokesperson called the narrative “misleading,” while Tata Motors’ passenger-vehicle chief Shailesh Chandra said a recent launch could lift Tata’s SUV share to “20-25%”. 4
For investors, the near-term test is whether Maruti can hold pricing power and keep costs in check as it pushes deeper into SUVs and premium models. At Wednesday’s level, HSBC’s target implies roughly 11% upside, but that maths depends on margins not slipping below the broker’s comfort zone.
The broader market offered little support. Indian benchmarks were lower in morning trade, with tariff and geopolitical headlines offsetting optimism ahead of the results season, and “near-term sentiment remains cautious,” said Hitesh Tailor, a research analyst at Choice Equity Broking. 5
But margin delivery can be derailed quickly if commodity prices rise again or if rivals step up incentives in key SUV and compact segments. Any slowdown in demand after the initial boost from tax cuts and year-end offers would also squeeze volumes and dealer inventory plans.
