Maruti Suzuki India rises over 5%, records sharpest gain in 5 weeks

Shares of Maruti Suzuki India rallied 5.5 per cent to Rs 5,798 on the BSE on Wednesday, recording its sharpest intra-day gain in the past five weeks. Earlier, on May 13, the stock of automobiles major had surged 7.5 per cent during the intra-day trade.

The country's largest carmaker has partnered with IndusInd Bank and Karur Vysa Bank for vehicle financing to help spur sales after the resumption of operations following lockdown relaxations.

Today, Maruti Suzuki India (MSIL) said it has partnered with Karur Vysya Bank to offer consumers simpler and flexible financing schemes to own a new car. On Tuesday, the company has collaborated with IndusInd Bank to arrange attractive finance schemes to help customers buy their favourite car.

MSIL said it has been arranging consumer finance with finance partners to support the progressive restart of business activities in the automobile industry. This collaboration is aimed at providing support to customers who might be facing a liquidity crunch in the prevalent Covid-19 scenario.

Last week, MSIL had joined hands with Mahindra Finance, one of the leading NBFCs, to ease the finance availability for customers looking at personal mobility solutions during ongoing Covid-19 pandemic. The company had also partnered with HDFC Bank and ICICI Bank to offer a bouquet of flexible finance schemes for new car buyers.

Meanwhile, analysts expect volume recovery from the second half (October-March) of the financial year 2020-21, led by a low base, pent up demand, and better rural sentiment. MSIL should hold the pole position in the market, owing to the increasing share of petrol vehicles, focus on new products and network expansion.

“Our checks indicate a new product pipeline including gasoline S-cross, XL5 UV-styled hatchback, BS6 diesel models, Jimny off-roader UV, electric hatchback, 800cc hatchback, new UV (over 4m), among others over the next two years. The network has increased to over 3,000 touchpoints, and the expansion continues,” analysts at Emkay Global Financial Services said in March quarter result update.

With today’s gain, the stock has outperformed the market by gaining 14 per cent, as compared to a 9 per cent rise in the S&P BSE Sensex.