Since the Announcement of Trump tariffs, the Share market has been very volatile, with companies from several sectors being worried as to how much effect the tariff will have on their top and bottom line.
The most talked-about sector that could be affected by the tariffs was the auto sector. The Auto shares have since then fallen from their highs, but some have still been resilient.
About the Company
Maruti Suzuki India Limited is the country’s largest passenger car manufacturer and a subsidiary of Japan’s Suzuki Motor Corporation. Established in 1981 as a joint venture between the Government of India and Suzuki, the company has played a transformative role in making personal mobility accessible to the Indian middle class.
Headquartered in New Delhi, Maruti Suzuki offers a wide range of vehicles—from budget hatchbacks like the Alto and WagonR to premium offerings under its NEXA brand, such as the Baleno, Ciaz, and Grand Vitara.
The company has a Market capitalization of Rs. 3,72,277 Crores, and is trading at Rs. 11,840. On a year-to-date basis, the shares have given a positive return of 5.64 percent, and on a 5-year basis, it has given a reasonable return of 121 percent.
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Immunity from Tariff risks
Maruti Suzuki sold 2,234,266 Vehicles in FY25, out of which 85.10 percent, or 1,901,681, accounted for domestic sales and 14.90 percent, or 332,585, accounted for Exports. According to FY24 data, the company exports to nearly 100 countries, and the top 5 Export destinations for the company are South Africa, Saudi Arabia, Chile, Mexico, and the Philippines.
However, in the recent conference call of Q4FY25, its Chairman, RC Bhargava, said that they don’t believe that the recent trump tariffs are going to overall affect the car industry and in particular their company. The company doesn’t have any exports to the USA, even after exporting to nearly 100 countries.
He also stated that things could get worked out in the next 2-3 months, and some slowdown might be there, but no rescission risks are there from the tariffs. And also stated that most of the exports of Maruti are in developing countries that lack their own auto manufacturing plants.
Financial Highlights
The company reported a 6.36 percent YoY increase in revenue from Rs. 38,471 Crore in Q3FY24 to Rs. 40,920 Crore in Q3FY25. On a QoQ basis, the company reported an increase of 5.56 percent in revenue from Rs. 38,764 Crore in the previous quarter.
Their Net profit saw a decrease of 1.03 percent YoY from Rs. 3,952 Crore to Rs. 3,911 Crore for the same period. On a QoQ basis, the company reported an increase of 4.93 percent in Net profit from Rs. 3,727 Crore in the previous quarter.
Written By Abhishek Das
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