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News: In a regulatory filing, as part of its parent i.e. Suzuki Motors global collaboration with Toyota, MSIL has announced manufacturing of its first electric vehicle(EV) for Toyota, with production commencing in CY25 at its Gujarat facility in India. This collaboration, part of their ongoing partnership since 2016, will result in an SUV based on Suzuki's eVX platform, featuring a 60-kWh battery pack. The Maruti version is anticipated to launch first, followed by Toyota's variant, and both models will be available in India as well as for export to markets such as Japan, the Middle East, and Europe.
Views: Currently, MSIL does not sell any EVs in the Indian or global market but sells hybrid vehicles. The company has previously guided for a launch of 5-6 BEVs by 2030. MSIL already manufactures some ICE models for Toyota in India with Toyota supplying Grand Vitara (mid-size SUV) to MSIL. This cobadging is in works for both the companies since quite some time with product sharing more from MSIL’s end then vice versa. We await the launch of this EV model. In the near term, amid muted volume growth prospects we hold a neutral view on the company with valuations supportive at ~20x PE on FY26E.
Impact: Neutral