Maruti Suzuki’s $8 Billion India Bet: A Big Leap for EVs & Make in India

Welcome Back Investor!

Starting August 27, 2025, the U.S. is enforcing an additional 25% tariff on Indian-origin goods, taking total duties up to 50% - one of the steepest ever levied. The move, aimed at curbing imports, threatens to slash India’s exports to the U.S. by 30–35%, putting nearly $47 - 48 billion worth of trade at risk. Exporters are bracing for higher costs, squeezed margins, and loss of competitiveness in the world’s largest consumer market, while the rupee slides under pressure, raising fears of further economic ripple effects.

Let’s dive in!

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▪️ Impact News

▪️ Markets

▪️ Everything else you need to know today

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IMPACT NEWS

Maruti Suzuki’s $8 Billion Bet: Powering India’s EV Ambitions

Maruti Suzuki, India’s largest carmaker, has announced a massive $8 billion (₹70,000 crore) investment in the country over the next five to six years, marking one of its biggest commitments yet to India’s automotive future. The move, unveiled during Prime Minister Narendra Modi’s visit to Suzuki’s Gujarat plant, was hailed by him as a “big leap for Make in India”, reinforcing India’s ambition to emerge as a global EV hub.

At the center of this strategy is the production of electric vehicles (EVs), beginning with the highly anticipated e-Vitara, slated to roll out from the Gujarat facility. Maruti plans to make this EV not only for Indian consumers but also for export to over 100 international markets, signaling a bold attempt to put India on the global EV map.

The investment will also strengthen Maruti’s manufacturing capacity, supply chain, and R&D efforts in green mobility. With growing competition from Tata, Hyundai, and Mahindra in the EV space, this push comes at a critical time when India is racing to meet its net-zero targets by 2070.

MARKETS

Indian equities tumbled on August 26, 2025, with the Sensex crashing 849 points to 80,786 and the Nifty slipping 256 points to 24,712, wiping out nearly ₹6 lakh crore in investor wealth. The sell-off was driven by panic over the U.S. imposing steep 50% tariffs on Indian goods, triggering fears of an export slowdown, while a weakening rupee, heavy FII selling, and weak global cues added fuel to the decline. Mid- and small-cap indices bore the sharpest brunt, highlighting fragile investor sentiment.
_{Closing figures as on 25.08.25 (3.30pm IST)}

🔎 In Focus

Stock Performance:

Top Gainers

✅ Britannia (+3.9% | ₹5,765.50): Britannia surged nearly 4% as investors moved into defensive FMCG stocks. Hopes of steady rural demand and GST rationalisation talk added to optimism.

✅ Eicher Motors (+2.7% | ₹6,151.00): The auto major climbed to new highs, supported by strong sales outlook and momentum buying despite overall market weakness.

✅ HUL (+2.3% | ₹2,692.60): Hindustan Unilever gained as FMCG stocks attracted safe-haven buying amid the market crash, with analysts highlighting resilience in consumption.

✅ Granules India (+1.9% | ₹469.50): Granules bucked the pharma sector trend, inching higher on stock-specific buying and ongoing positive sentiment around USFDA remediation efforts.

Top Losers

🔻 Vodafone Idea (-9.3% | ₹6.71): Vodafone Idea tanked nearly 9% as the government ruled out any further relief on AGR dues, reigniting debt worries. Heavy volumes added to the fall.

🔻 KFin Tech (-5% | ₹1,054.10): Shares slipped 5% as capital-market service providers faced pressure amid weak market sentiment and FII selling. No major company-specific news.

🔻 Vedanta (-4.9% | ₹428.20): Vedanta fell after fresh governance concerns around its restructuring plan, coupled with weak global metal prices triggered by U.S. tariff news.

🔻 PG Electroplast (-4.6% | ₹557.25): The stock extended its decline after muted earnings guidance and broad selling in small-caps, with no new positive triggers today.

INDIA FRONTIER

Everything else you need to know today

🚀 Skyward: Korean Air sealed its biggest-ever deal - $50B for 103 Boeing jets plus $13.7B in GE engines. Beyond a fleet upgrade, it cements U.S.-Korea ties and boosts Boeing’s global exports.

⚡ Charge: Ola Electric surged 5% after its Gen 3 scooters won PLI certification, unlocking 13–18% incentives till 2028. The move strengthens margins and could deliver profitability by FY26.

💼 Consensus: FIIs and DIIs rarely agree - but both boosted stakes in the same two Indian stocks last quarter. The rare alignment signals strong conviction and a potential breakout ahead.

🔧 Fabricate: India is moving from chip design to in-house fabrication, with the first private-sector chips rolling out this year. A bold step in its quest to join the global semiconductor big leagues.

SPECIAL

India’s Growth Engine Cools: GDP Slows to 6.7% in Q1 FY26

India’s once red-hot economy showed signs of cooling in the April–June 2025 quarter, with GDP growth slipping to 6.7%, down from 7.4% in the previous three months. A Reuters poll of 70 economists suggests the slowdown may persist through the year, raising concerns about momentum in Asia’s third-largest economy.

The government’s aggressive push - capital spending jumped 52% to ₹2.8 trillion (~$32 billion) - wasn’t enough to counter softer private investment, sluggish industrial output, and muted urban demand. Household spending, typically the backbone of India’s growth story, showed signs of fatigue as consumers tightened their wallets.

Interestingly, rural demand provided a silver lining. Strong agricultural output and easing food prices helped cushion the blow, keeping growth from slipping further. Still, the more stable Gross Value Added (GVA) is estimated at 6.4%, underscoring the fragility of the recovery.

Adding to the challenge, banks have been slow to pass on the 75-basis-point repo rate cut, dampening the intended stimulus for borrowing and investment. With full-year growth now expected to average 6.3% -the slowest in five years, the big question is whether India can reignite private sector investment to keep its growth story alive.

THE HANOOMAAN INSTITUTE

📈 Why Berkshire Hathaway Still Shines as a Value Stock

Warren Buffett has always said, “Price is what you pay. Value is what you get.” And today, his Berkshire Hathaway is proving exactly why it continues to attract long-term investors - even in a market chasing flashy tech names.

Here are five reasons it stands tall as a value play right now:

1️⃣ Diversified Strength: From insurance to energy to railroads, Berkshire’s portfolio is a fortress. It isn’t just betting on one sector - it’s built for resilience.

2️⃣ Massive Cash Pile: With over $150 billion in reserves, Berkshire can swoop in on distressed deals when markets stumble - a classic Buffett edge.

3️⃣ Steady Earnings Power: Despite volatility, core businesses generate predictable cash flow, offering stability when many companies are wobbling.

4️⃣ Shareholder-Friendly Moves: Strategic buybacks and disciplined capital allocation keep boosting per-share value without risky overextensions.

5️⃣ Attractive Valuations: While hype-driven stocks soar and fall, Berkshire trades at a reasonable multiple - giving investors a margin of safety.

For anyone seeking value in 2025, Berkshire is more than Buffett’s legacy - it’s a masterclass in patience, prudence, and compounding.

👉 Do you see Berkshire as a defensive shield or a long-term growth bet in today’s uncertain markets?

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Thanks for reading.

Until tomorrow!

Hanoomaan India Business team

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