Maruti Suzuki up 1% post e-vehicles announcement; brokerages upbeat
Maruti Suzuki closed over a percent intraday on Monday as investors cheered its announcements on electric vehicles.
Toyota Motor and Suzuki Motor agreed to cooperate in selling electric vehicles in India from around 2020, they said on Friday, aiming to give each other a leg up in emerging markets and low-emission technology.
The announcement comes after the Japanese companies agreed in February to trade expertise in parts supplies and research and development.
The partnership could help Toyota to expand in India’s massive car market, where drivers prefer the type of affordable compact vehicles in which Suzuki excels.
Suzuki, in turn, is expected to gain from Toyota’s innovations in automated driving, artificial intelligence and low-emission vehicles.
Brokerages are upbeat about the development.
Brokerage: Nomura | Rating: Buy | Target: Rs 9,843
The brokerage said that Maruti-Toyota MoU for EVs is a positive for OEMs as they would have a head-start over other OEMs in India.
Brokerage: Goldman Sachs | Rating: buy | Target: Rs 9,135
The brokerage said that intention of EV launch in India was ahead of expectation.
Brokerage: Citi | Rating: Buy | Target: Rs 9,400
The bank said that Suzuki will do the manufacturing, Maruti could be relegated as marketer. Further, a development is positive for Maruti as it will help rapidly close the first-mover advantage of M&M.