Maruti Suzuki Shares Slide 25% In 2026 So Far, Worst Among Auto Peers

Maruti Suzuki, the biggest car manufacturing company in India, has run into a rough patch on the stock market.

Just a few weeks back, Maruti Suzuki shares hit an all-time high of ₹17,372. Since then, the price has crashed by almost 25% and is now trading near the ₹12,500 mark. This massive slide has wiped out approximately ₹1.32 lakh crore of investor’s wealth in less than three months.

The pace of the decline makes Maruti Suzuki the worst performer among India’s major four-wheeler companies this year. For comparison, Mahindra & Mahindra is down 19%, Hyundai Motor India has fallen 16%, and Tata Motors is down over 15%.

Maruti’s struggle is tied to its shrinking domestic market share, which has stayed below 40% in the current fiscal year, largely due to a long-term slump in small car demand.

Why Is The Stock Under Pressure?

Brokerage firms have highlighted a few main reasons why people are getting worried about Maruti Suzuki’s future:

• Weak Hatchback Sales: In February, sales for small cars like the Alto and S-Presso were flat. Popular models like the Swift and Baleno saw a 9% drop in sales, showing that Indian buyers are moving away from hatchbacks.

• The SUV Challenge: While Maruti is trying to sell more SUVs, competitors are moving faster. This limits the company's ability to expand its market share.

• Margin Worries: Experts at Nomura and Jefferies worry that rising costs and the focus on cheaper car segments will hurt the company's profit margins.

Can Maruti Suzuki Stage A Comeback?

Not everyone thinks the situation is bleak. Some analysts believe the car company can make a turnaround. There are a few key reasons why they believe Maruti Suzuki can bounce back:

• More Cars on the Way: Recently, Maruti has not been able to build cars fast enough to keep up with buyers. That is about to change. New production lines are set to start running in April 2026. This should solve the supply problems and help the company deliver more vehicles to customers.

• Exciting New Launches: The company has a very busy schedule for new models. This includes updated versions of the popular Brezza and their new electric SUV, the e-Vitara. These fresh models could draw more people back to the brand.

• Export Success: This is the brightest spot for the company. Maruti has already surpassed its 2026 export goal of 4 lakh units by February. It plans to double this number by 2031.

Also Read: Govt Launches ₹497 Cr RELIEF Scheme For Exporters Hit By Crisis

What Can Investors Expect Next?

For investors, the current drop in Maruti Suzuki is a tale of two different markets. On one hand, the domestic "small car" business, which made Maruti famous, is clearly struggling. If one believes the future of Indian roads is purely about SUVs, Maruti has a tough climb ahead to beat rivals who started earlier.

On the other hand, the company's export business is booming, and its move into electric vehicles (EVs) augurs well. In the near term, performance may stay mixed, with domestic weakness and export strength moving in opposite directions.

Source:

The Economic Times