TMS Ep489: Maruti acquisition, Mumbai property price, DVR, semiconductors

Maruti Suzuki India is set to acquire parent Suzuki Motor’s manufacturing facility in Gujarat. India’s largest carmaker plans to wind up the deal to purchase its contract manufacturing partner, Suzuki Motor Gujarat, by March 31st next year. But why is Maruti Suzuki buying its parent’s unit in Gujarat? Is there more to it than what meets the eye? 

Sales of passenger cars breached the two-million mark in the first half of the ongoing calendar year for the first time. New launches by Maruti, Hyundai, Tatas and Mahindra and Mahindra are selling like hot cakes. Indians are loosening their purse strings like never before. And like the cars, demands of residential properties are also outstripping supply. No wonder the prices are shooting through the roof. Properties in parts of Dubai have become more affordable than in the suburbs of Mumbai. But why so?  

Rising property prices have, off late, turned real estate into an attractive investment option. Let us now turn the gaze on financial markets. Tata Motors was the first Indian-listed company to issue differential voting rights or DVR shares in 2008. Now after 15 years, the auto giant has brought the curtains down on this fundraising instrument. So, is this the end for DVRs in India? 

Tata Group, meanwhile, is also exploring manufacturing its own chipsets. India has rolled out an attractive PLI scheme to make the country a semiconductor manufacturing hub. But what is a semiconductor? Listen to this episode of the podcast for all the answers.