Maruti Suzuki's Price Cuts to Boost Market Share but Dent Margins, Says Nomura

uzuki India, the country's leading car manufacturer, has announced significant price reductions across its entire model range, effective from September 22, 2025, to align with the recent GST rate cut and make vehicles more affordable, particularly for two-wheeler users. While this move is expected to enhance the company’s market share, Japan-based brokerage firm Nomura warns that it could impact Maruti Suzuki’s margins by approximately 100 basis points (bps) in the near term. According to a report by ET Now on September 19, Nomura highlighted that the sharp price cuts, which go beyond the GST reduction of 8.5% for small cars, may lead to inventory losses for the automaker. The price reductions, with discounts of up to ₹1,29,600 on select models, are aimed at passing on the full benefit of the revised GST regulations to customers while also making small cars more accessible to a broader audience, including those transitioning from two-wheelers.