Will e-Vitara launch drive gains for Maruti Suzuki stock? Strategy decoded

Maruti Suzuki launches its first EV SUV, e-Vitara, with global export focus. Analysts decode stock outlook, price targets, and growth strategy

Maruti Suzuki share price today: Dalal Street analysts are cautiously positive on Maruti Suzuki growth outlook after the company launched its first-ever all-electric sports utility vehicle (SUV), e-Vitara, on August 26, 2025. The caution stems from the company’s higher price point compared to peers, they said.

 

Maruti Suzuki India launches e-Vitara

On August 26, Prime Minister Narendra Modi flagged off the production of Maruti Suzuki’s first Battery Electric Vehicle (BEV), ‘e-Vitara’, at the company’s Gujarat plant. Maruti Suzuki India aims to make the company’s first-ever SUV as the largest mass-produced and exported electric vehicle from India. 

Key features of e-Vitara include a spacious cabin, digital cockpit, 7 airbags, ADAS-2, sunroof, Harman sound system, ventilated/split seats, multiple drive modes and a 4W drive option, among others with multiple battery options (49/61kwh LFP) and upper end range of 500 km plus. 

 

 

Separately, Maruti Suzuki India also started a new battery components plant at the same site, which has been set up by Suzuki together with Toshiba and Denso.

 

This plant will manufacture hybrid battery electrodes locally (80 per cent localisation), thereby strengthening the EV supply chain in India, Maruti said.

 

TDSG (TDS Lithium-Ion Battery Gujarat Pvt Ltd) has produced battery packs for over 1 million vehicles for captive consumption since its incorporation in 2021. Its annual capacity stands at 18 million cells (can cater to over 350,000 hybrids), and is being expanded to 30 million cells.

e-Vitara target market

Maruti’s first-ever EV, which has been launched with a focus on global markets, is likely to cover more than 100 export markets, with an initial focus on Germany, the Netherlands, Sweden, Denmark, Norway, and Austria, according to the company.

 

Notably, e-Vitara has already been introduced in the UK, and a wider global launch is scheduled in the coming months.

 

Will e-Vitara launch drive Maruti Suzuki stock?

Analysts at Nomura expect e-Vitara to generate strong exports momentum for Maruti Suzuki. It estimates volumes for FY26 at 415,00 units (up 25 per cent year-on-year), and for FY27 at 449,000 units (up 8 per cent Y-o-Y).

 

“Europe will be the key focus area for the e-Vitara, where the company will compete with Chinese EV companies including BYD and Korean companies such as Hyundai and Kia. We expect intense competition, and thus reviews in these markets vs competition will be a key monitorable,” Nomura said.

 

Domestically, while we estimate low volumes for e-Vitara (pegged at around 3,000 units per month for MSIL + Toyota) in India, given the likely higher price point vs competition, the proposed GST cuts could drive further upside in the stock, Nomura said with a ‘Neutral’ rating. It has set a share price target of ₹13,113.

 

Those at Nuvama Institutional Equities, meanwhile, have a ‘Buy’ rating on Maruti Suzuki stock with a target price of ₹14,300.

 

e-Vitara’s production has begun at the company’s SMG plant which has an annual capacity of 750,000 units for three lines, and the fourth line with 250,000 capacity shall be operational in FY27.  The fourth line will be fungible across powertrains (ICE, EV and Hybrid).

 

Further, the plant is highly automated with IoT 4.0 technology, yielding world-class quality and low warranty costs -- notably lower than peers.

 

“The investment stands at ₹2,200 crore, relating to ‘productionising’ expenses. The target is to manufacture over 70,000 units in the first 12 months. It will be sold overseas on a cost-plus basis, and hence shall be profitable at the Ebit level, even without factoring in PLI benefits,” Nuvama analysts noted.

 

Besides, the company has made an investment of ₹4,270 crore towards the new battery component plant and further capacity expansion highlight the focus on hybrids.

 

“It manufactures LTO (Lithium Titanium Oxide) cells for mild hybrids and NMC (Nickel Manganese Cobalt) cells for strong hybrids. TDSG has achieved electrode level (cathode + anode) localisation of lithium-ion cells for hybrids. These cells are supplied to models such as Grand Vitara and Invicto,” Nuvama pointed out.

 

On the bourses, Maruti Suzuki share price rose 1.5 per cent on the BSE in the intraday trade, hitting a high of ₹14,940.6 per share. The stock, however, erased gains to trade just 0.1 per cent higher at 11:11 AM as against a 0.25 per cent dip in the BSE Sensex index.

 

Maruti stock had risen 1.7 per cent on August 26, the launch day of e-Vitara.