Auto stock in focus after announcing plans to build 1 Lakh EV charging stations across India

Synopsis: Maruti Suzuki has recently announced via press release that it is aiming to build a robust network of over 1 lakh EV-charging stations across India. 

The shares of this auto company majorly engaged in manufacturing and selling of passenger vehicle, automotive parts and spare parts, with more than 3500 plus dealer network and 6000 plus after sales service partners across the country, were in focus after it unveiled plans to scale its EV charging network to 1,00,000 plus public charging points.

With the market capitalization of Rs. 5,05,308 crores, the share of Maruti Suzuki ltd trading at a P/E of 34.2 whereas the industry P/E stands at 34.5 and share price being at Rs. 16,065. 

What is the News:

 Maruti Suzuki has recently announced a robust electric vehicle eco-system with a comprehensive end-to-end digital platform for EV charging needs, including home charging and public charging with an integrated payment journey.

As a part of a historic move, Maruti Suzuki has signed collaboration agreements with 13 leading Charge Point Operators (CPOs) and aggregators to provide seamless charging experiences on a single platform, with 2000+ exclusive Maruti Suzuki Charging Points accessible across nationwide dealer networks. The company is working to ensure charging points at an average distance of 5 to 10 kilometers in top 100 cities of India.  

The company is working with its partners to enable 1,00,000 plus public charging points by 2030. To demonstrate the unparalleled EV charging network, four e VITARAs were flagged off from Gurugram in all four directions – Srinagar up North, Kanyakumari in the South, Bhuj at the western edge of India and Dibrugarh in the eastern part of the country, as a part of the e drive. e Vitara has performed consistently which has been rigorously tested from sand to snow over extreme temperature spectrum of  60°C to -30°C, delivering a driving range of 543 km. 

The Maruti Suzuki ‘e for me’ EV charging mobile app enables users to locate, pay & use EV charging points  and use public and smart home chargers from the same app. The users can remotely start/ stop and manage the power output of the same home charger. Users can also mirror the e for me app on the infotainment system for seamless charging experience while sitting inside the car.  

Company Overview & Financial Highlights

The company started as a joint venture agreement between the Government of India and Suzuki Motor Corporation. The company was started as a government company with the name Maruti Udyog ltd and later acquired by SMC and changed to Maruti Suzuki Ltd. 

The company is actively engaged in the manufacturing, purchase and sale of motor vehicles, components and spare parts and has four manufacturing facilities with a total manufacturing capacity of 2.6 million units annually. 

Year-on-Year analysis: Maruti Suzuki’s revenue has shot up  from Rs. 37,449  crores  to Rs. 42,344 crores up 13 percent, operating profit increased by 1.75 percent, from Rs. 4,999 crores  to Rs. 5,086 crores and Net profit increased by 7.3 percent from Rs.3,102 crores  to Rs. 3,349 crores 

Quarter-on-Quarter analysis: Maruti Suzuki  revenue has shot up significantly on a quarterly basis from Rs. 38,605 to Rs. 42,344, up by 9 percent, operating profit up by 10 percent from Rs. 4623 crores to Rs. 5086 crores and net profit down by 11.6 percent from Rs. 3,792 crores to Rs. 3,349 crores.

Written by Vachan Kadli 

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