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AskMarketsLimited Public PreviewAskMarketsLimited Public PreviewIndia's dominant carmaker faces its sharpest structural challenge in a generation — policy headwinds, a resurgent Tata Motors, and a ₹35,000 crore capacity bet that must pay off before rivals close the gap. 14
India's car market is fracturing along political fault lines. Delhi's EV Policy 2026 stripped hybrid subsidies — the technology Maruti built its mass-market dominance around — and the company called it 'surprising' 1. Tata's Punch and Nexon now hold the top two spots on June 2026 sales charts 2. Is Maruti's half-century grip on Indian roads loosening for good?
Maruti is not standing still. In May 2026 it clawed back to 40% passenger vehicle retail share, even as FY26 wholesale data showed share at a 13-year low 3. The ₹35,000 crore Kharkhoda plant — inaugurated by PM Modi and Japan's Economy Minister Takaichi — adds 250,000 units of capacity but front-loads fixed costs during the ramp 4. Jefferies upgraded to Buy; LIC quietly raised its stake above 5% 56 — institutional money is betting the selloff overshot.
Kharkhoda adds 250k units; Q3 FY26 record domestic sales 564,669 units on GST surge 4
Delhi hybrid subsidy axed; state EV policy fragmentation erodes entry-level moat 1
Crude easing aids near-term costs; Kharkhoda ramp compresses margins FY27 7
| Company | Mkt cap | P/E | ROE | OPM | Rev 3Y |
|---|---|---|---|---|---|
| MARUTI | 3.60L cr | 25.1 | 14.4% | 11.1% | 16.0% |
| M&M | 3.37L cr | 18.0 | 21.9% | 18.6% | 17.9% |
| HYUNDAI | 1.58L cr | 31.9 | 29.9% | 11.4% | 5.5% |
| TMPV | 1.04L cr | 1.3 | 72.4% | 5.0% | -1.0% |
| FORCEMOT | 22.3k cr | 20.4 | 33.5% | 16.1% | 21.7% |
| OLECTRA | 8.9k cr | 50.7 | 15.8% | 13.8% | 28.5% |