Volume gains to offset margin pressures for Maruti Suzuki

The Maruti Suzuki stock has gained about 4 per cent over the past seven days on strong sales in May, expectations of higher growth in 2018-19, and plans to launch electric vehicles by 2020. While there are headwinds such as higher raw material cost and a weak rupee, which make imports costlier, analysts say these will be offset by the operating leverage (higher volumes) and reduction in discounts as the demand in the sector improves, and a richer product mix. First, comes volume growth, both for Maruti Suzuki and the sector. After reporting single-digit growth for the past few months, th.....

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