Maruti may have crossed Rs 10,000 after 6 years but I prefer M&M: Gurmeet Chadha

Gurmeet Chadha on Moneycontrol's Opening Bell Show

India’s car segment will surpass other segments of the automotive industry, as happened in China, said Gurmeet Chadha, co-founder and CEO of Complete Circle Capital, a boutique financial and wealth management firm, in an exclusive conversation with Moneycontrol during our 'Opening Bell' show. Currently, China has more cars than two-wheelers.

The CEO remains positive about the prospects of the four-wheeler space, particularly for Maruti Suzuki, which is regaining ground.

However, not all is lost for two-wheeler makers. Chadha said India’s two-wheeler industry has not shown significant volume growth from 2016 to 2022, and has only recently started to recover to pre-COVID levels. However, he expects this trend to change in future.

Within the two-wheeler segment, he emphasised that those focusing on premiumisation are performing better, while companies such as Hero, TVS, Bajaj, and Eicher have faced challenges.

Maruti Suzuki hits 10,000 mark after six years

On Wednesday (July 5), India’s largest carmaker, Maruti Suzuki, saw its shares cross the 10,000 mark.

Commenting on the company’s strategy, Chadha pointed out that after the introduction of its 1.3-litre engine in 2013-14, Maruti had the top four bestselling models: Alto, Swift, Baleno and Brezza.

Now, Chadha noted, the company had started focusing on its UV (utility vehicle) portfolio. The move had come a bit late, he said, but sales are expected to gain momentum with a series of launches. The positive response to the company’s hybrid models and the partnership with Toyota have the potential to be a significant breakthrough for Maruti, he added.

M&M preferred in the auto space:

Chadha favours M&M (Mahindra & Mahindra) over Maruti. The company’s attractive valuations, recouped market share in the SUV (sports utility vehicle) segment, a sound capital allocation strategy, exits from loss-making joint ventures and a positive view on its farm equipment business — backed by expectations of double-digit growth for the tractor segment and a rural recovery — are key reasons for this preference.