Maruti Suzuki is in the limelight. For the 4th day in a row, the stock price zoomed up, going up over 4.5% to hit an intraday high at Rs.7540.25, not too far from its 52-week high of Rs.7566, hit on 17th Jan’20.
The stock rose after the Board today approved changing the current model of Vitara Brezza to a new one. The company did not specify which new model but its certainly not going ahead with Vitara Brezza.
This new model is to be made at the existing factory itself and is expected to start rolling out from 2022.
Vitara Brezza is facing tough competition from Kia Motors – its two models Sonet and Seltos, have been doing very well and in Nov, it sold 11,417 units of Sonet and 9,205 units of SUV Seltos. Maruti Brezza could sell only 7838 units.
Even Hyundai’s Venue, launched later than Brezza, raced ahead wit more sales at 9,265 unit in Nov.
Clearly, Maruti is having a rethink on this mini/compact SUV segment and getting out of it before it starts bleeding.