Maruti Suzuki India, the largest passenger car manufacturer in the country, is prepared for a new product cycle and is likely to undergo a big transition, believes brokerage firm Bernstein.
It has maintained an Outperform rating on the stock with a target price of Rs 7,950 per share.
Maruti Suzuki is on a verge of the new product cycle and while other companies are just looking to refresh their old models, Maruti has got a healthy pipeline of new products and they are going to reposition themselves in a big way, the brokerage said in a report.
Bernstein believes this is a “once-in-a-decade kind of a transition” which will happen as far as Maruti is concerned.
It also believes that Maruti Suzuki will focus on three key strategies – to launch a lot of SUVs, to focus on hybrid models and reintroduction of some diesel vehicles as well.
The automobile major, on Monday, had announced that it will hike car prices hike in the July-September quarter due to an increase in the input costs.
The company did not reveal the quantum of the proposed price hike, however, it stated that the increase shall vary for different models.
The auto major has already increased its prices twice in 2021 and this will be the third one.
Watch the accompanying video of CNBC-TV18’s Nimesh Shah for more details.