Why Maruti Suzuki's share prices hit all-time high ahead of Trump tariff?
&imwidth=600&imheight=450&format=webp&quality=medium "Why Maruti Suzuki's share prices hit all-time high ahead of Trump tariff?")
Maruti Suzuki India MD and CEO Hisashi Takeuchi and Suzuki Motor CEO Toshihiro Suzuki Photograph: (ANI file)
Donald Trump's additional tariff on India because of the latter's Russian oil purchase will take effect on August 27. However, even when the Indian stock market tanked, Maruti Suzuki, India's biggest car seller, registered its highest-ever share prices. Here's what happened.
A day before Donald Trump's tariff takes effect, the Indian stock market tanked on Tuesday. However, the shares of Maruti Suzuki, the car-maker that rules the Indian market, surged 2.53 per cent. The Japanese automaker'sshares touched an all-time high price of Rs 14,823.45 a piece.
Why did Maruti Suzuki's share prices rise at a time when the market is apprehensive about the impact of Donald Trump's tariff on the Indian economy?
Maruti Suzuki has been selling the highest number of cars in India for several decades. It also exports cars from India to several countries in the world. However, the Japanese car-maker has announced that it will invest thousands of crores in the Indian market over the next 5-6 years. The announcement was taken by the market as a positive cue, increasing the price of the share.
Maruti Suzuki announced its highest-ever investment commitmentin India. It said it would invest Rs 70,000 crore over the next five years in India. This investment will make India a global hub for electric vehicles.
According to reports, Maruti Suzuki announced at its Hansalpur plant in Gujarat's Ahmedabad. The announcement was made during an event in which Prime Minister Narendra Modi and Suzuki Motor's President Toshihiro Suzuki jointly flagged off the e-Vitara.
The company said the investment will be made in sectors like manufacturing, research and development, and sustainability initiatives.
Trending Stories
)
&im=FitAndFill=(700,400))
&im=FitAndFill=(700,400))
)
)
)
)
)
)
)
)
)
&im=FitAndFill=(700,400))
)
&im=FitAndFill=(700,400))
)
)
)
&im=FitAndFill=(700,400))
&im=FitAndFill=(700,400))
&im=FitAndFill=(700,400))
&im=FitAndFill=(700,400))
)
)
)
)
)
&im=FitAndFill=(700,400))
)
)
Rs 32000 crore will be earmarked for enhancing the company's manufacturing capacity by 1 million cars per annum. Rs 23,240 crore will be used for the development of new EVs by 2030. Rs 15000 crore will be allocated to supporting carbon-neutral projects.
The company further said it will attempt to localise 80 per cent of EV battery manufacturing to reduce India's dependence on imports. The firm will also expand its hybrid and CNG offerings.
By FY 2030-31, the company also aims to triple its exports from India to 7.5 lakh cars per year.
Maruti Suzuki has a 40 per cent share in India's passenger vehicle exports.
Donald Trump has imposed a 50 per cent tariff on Indian exports to the United States for New Delhi's purchase of oil from Russia. It will take effect on Wednesday.
Spooked by the prospect of an adverse impact of Trump's tariff on the economy, the BSE Sensex was down 849.37 points, and the Nifty was down 255.70 points.