The beginning of 2026 was full of ups and downs for the country’s largest car company Maruti Suzuki. After making a record high at the beginning of the year, the stock fell by about 25%, causing investors to lose about ₹1.32 lakh crore.
stock fell sharply
The share has slipped from a high of around ₹ 17,372 to around ₹ 12,500. This is the worst performing stock in the auto sector this year. In comparison, Mahindra & Mahindra has fallen by about 19% and Hyundai Motor India by 16%, while Tata Motors’ passenger vehicles have also fallen by more than 15%.
Why pressure on the company?
According to brokerage Jefferies, demand for vehicles in the country is good and exports are also strong, but there are concerns about increasing domestic market share and profit (margin). At the same time, Nomura believes that more focus on small segments and rising costs may put pressure on margins. Also, Maruti’s share may be limited due to increasing demand for SUVs.
The company’s domestic market share remains below 40% and the major reason for this is the decline in demand for small cars. Apart from this, lack of production capacity is also affecting the supply.
Effect visible in sales also
Home sales remained almost flat in February. The mini car segment (like Alto, S-Presso) remained stable, while the compact car segment (Baleno, Swift, WagonR) declined by about 9%.
Is the fall too much?
Motilal Oswal Financial Services feels that the decline has been a bit excessive and has given a Buy rating. He says that the situation may improve after new capacity is added from April 2026. According to Axis Securities, changes like GST 2.0 will reduce costs and increase demand, especially in the hatchback and compact SUV segments.
game plan ahead
The company is preparing to launch new models, like the new version of Brezza, e-Vitara and Victoris. Exports also remain strong and the company is targeting 7.5-8 lakh units by FY31. The sharp decline in Maruti Suzuki’s stock is due to challenges related to market share, margin and capacity. However, demand is strong and there is hope of recovery in the coming time due to new launches and increase in capacity.