e-Vitara launch and its potential impact on Maruti Suzuki shares

Maruti Suzuki has made a significant move into the electric vehicle (EV) space with the launch of its first-ever all-electric SUV, the e-Vitara, on August 26, 2025. Analysts are cautiously optimistic about the company’s growth prospects, citing strong export potential and innovative EV technology, but some caution remains due to the vehicle’s higher price point compared to competitors. The launch coincided with positive stock movement for Maruti Suzuki, highlighting investor interest in the company’s EV strategy.

e-Vitara Launch and Features

The e-Vitara was flagged off by Prime Minister Narendra Modi at Maruti Suzuki’s Gujarat plant. Positioned as the company’s first Battery Electric Vehicle (BEV), the e-Vitara aims to become one of the largest mass-produced and exported EVs from India.

Key features of the e-Vitara include:

• Spacious cabin with digital cockpit

• 7 airbags and ADAS-2 (Advanced Driver Assistance System)

• Sunroof, Harman sound system, ventilated and split seats

• Multiple drive modes and 4-wheel drive option

• Battery options: 49 kWh / 61 kWh LFP

• Range exceeding 500 km for higher-end models

Additionally, Maruti has launched a battery components plant in Gujarat in collaboration with Toshiba and Denso to manufacture hybrid battery electrodes locally, achieving 80% localisation and strengthening India’s EV supply chain.

TDSG Battery Production Capabilities

TDS Lithium-Ion Battery Gujarat Pvt Ltd (TDSG) has been producing battery packs since 2021, with over 1 million units made for captive consumption. The plant’s current annual capacity is 18 million cells, sufficient for over 350,000 hybrid vehicles, and is being expanded to 30 million cells. This facility will support Maruti’s hybrid and EV production while reducing reliance on imports.

e-Vitara’s Target Markets

Maruti Suzuki is focusing on global markets for e-Vitara, covering more than 100 export destinations, with an initial focus on Germany, Netherlands, Sweden, Denmark, Norway, and Austria. The SUV has already been introduced in the UK, with a wider international launch expected in the coming months.

Analyst Views: Potential Impact on Maruti Suzuki Stock

Nomura analysts expect the e-Vitara to drive export momentum, estimating 415,000 units in FY26 (up 25% year-on-year) and 449,000 units in FY27 (up 8% Y-o-Y). Europe will be a key market, competing against Chinese EV brands like BYD and Korean manufacturers Hyundai and Kia.

Domestically, expected sales are modest at around 3,000 units per month, given the vehicle’s premium price. Analysts believe proposed GST cuts on EVs could further support stock upside, with Nomura assigning a Neutral rating and a target price of ₹13,113.

Nuvama Institutional Equities has a Buy rating with a target of ₹14,300, citing production efficiency and profitable export strategy.

e-Vitara Production and Plant Capabilities

The e-Vitara is produced at Maruti’s SMG plant, which has an annual capacity of 750,000 units across three lines, with a fourth line (250,000 units) expected in FY27. The plant is highly automated with IoT 4.0 technology, ensuring world-class quality and lower warranty costs.

Nuvama analysts noted that the ₹2,200 crore investment for productionising e-Vitara is expected to generate profit at the EBIT level, even without considering PLI incentives.

Battery Component Investment and Hybrid Expansion

Maruti has invested ₹4,270 crore in the new battery component plant. TDSG manufactures:

• LTO (Lithium Titanium Oxide) cells for mild hybrids

• NMC (Nickel Manganese Cobalt) cells for strong hybrids

These cells are used in models such as the Grand Vitara and Invicto, reflecting Maruti’s focus on hybrid and EV technology.

Stock Market Response

Following the e-Vitara launch, Maruti Suzuki shares rose 1.5% intraday, hitting a high of ₹14,940.6 per share before settling marginally higher. The stock had already gained 1.7% on the launch day, reflecting market optimism regarding Maruti’s EV strategy.

Conclusion

The launch of e-Vitara marks a major step for Maruti Suzuki in the global EV market. While analysts remain cautiously positive due to the premium pricing, strong export potential, advanced EV and hybrid technology, and efficient manufacturing capabilities may boost the company’s stock performance over the coming years.