Strong growth justifies Maruti's valuations

Analysts estimate double-digit sales growth and market share gains in FY18

Led by its portfolio of utility vehicles and new vehicle launches, Maruti Suzuki continues to surprise the Street with gains in volumes and market share. The company’s February volumes once again outperformed the domestic passenger vehicle segment with a growth of 12 per cent, while the second largest player, Hyundai, reported a growth of only four per cent  year-on-year (y-o-y). Overall passenger vehicle sector growth is pegged at 8-10 per cent for February.

A large part of Maruti’s performance is led by growth in the utility vehicle (UV) segment, comprising Ertiga, Vitara Brezza, S-Cross and Gypsy brands. The UV portfolio