Maruti Suzuki has dethroned Tata Motors and took way the tag of India’s most valuable automotive company. Tata Motors, which held this title for many years, is now the second most valuable automotive company in India.
Maruti Suzuki has topped market capitalisation among Indian automakers for the first time since March 2010. The company’s stock ended at Rs 4,180 on Thursday, an increase of 0.61 per cent, for a market capitalisation of Rs 1.26 lakh crore. Tata Motors closed at Rs 395.10, up 0.2 per cent, for a market value of Rs 1.13 lakh crore. Both the companies have played the game of cat and mouse between 2008 and 2010.
One of the major reasons why the Gurgaon-based manufacturer performed well is because a slew of very good product launches, increase in profit margin and favourable foreign currency impact. On the other hand, Tata Motors had a poor domestic performance. However, Jaguar Land Rover performed more than decent in Europe and North America but the recent slowdown in China sales gave a big blow to Tata Motors’ overall figures. Additionally, Maruti Suzuki is expected to perform well in the next few months as well, as the Seventh Pay Commission will increase the salaries of the government employees considerably.