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As per media sources, banking upon the recent success of the new Brezza as well as Grand Vitara in the SUV space as well as upcoming new launches of Jimny and Baleno Crossover, Maruti Suzuki is targeting a production level of 25 lakh units for FY24E, which includes 2.5 lakh units of Grand Vitara production at Toyota’s facility, implying captive production target of 22.5 lakh units.
We had built in production and sales of 22.5 lakh units for FY24E vs. 20 lakh units sales expectation in FY23E, implying growth of 10% on a YoY basis. With 25 lakh units of production and sales it implies MSIL is targeting volume growth of ~25% YoY in FY24E, which we believe is very strong and bodes well for the overall earnings and market share. We will await further comments by the company on this front before building in the same in our model and target price calculation.