Japanese auto major Suzuki Motor Corporation (SMC), has increased its stake in Indian subsidiary Maruti Suzuki to 56.37% by purchasing shares from the market.
Prior to the transaction, Suzuki held a 56.28 per cent stake in Maruti Suzuki.
Maruti Suzuki said in a notification to the Bombay Stock Exchange (BSE) that Suzuki purchased 284,322 equity shares valued at Rs 204.31 crore.
Earlier in March this year, Suzuki had purchased another tranche of 211,000 equity shares of Maruti Suzuki valued at Rs 134.26 crore to raise its stake in the company from 56.21 percent.
While Maruti Suzuki, like its peers, has been heavily impacted by the lockdown announced in India and the slowdown in the economy, thanks to its presence in the entry level segment, the steadily increasing wholesale volumes have been the key trigger. In August, the company posted a 15-17 per cent growth over July this year and the year ago period to 124,000 units. The robust growth was on account of demand for the mini segment comprising Alto and Xpresso, preference for personal mobility as compared to public transport/shared mobility, relaxation of unlocking guidelines and restocking of inventory at the dealer end ahead of the festive season.
“Earlier, it was established that the Indian market may grow to a scale of 10 million units by 2030. We believe these are achievable numbers. The only thing is that it may need a few more years. Compared to now, it is a huge increase," Toshihiro Suzuki, president and chief operating officer, Suzuki Motor Corp said recently.