Maruti Suzuki has plastered India with its Live life with LUV (Life Utility Vehicle) advertisements as it promotes its new Ertiga model,and stock investors appear to have responded very well in kind.
As of Thursday’s close,Maruti stocks had surged 9.3 percent since the launch of the model on April 12,versus a 2 percent gain in the broader Nifty index,after analysts cited the competitive pricing for the model.
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Shares in India’s biggest car maker Maruti Suzuki added 1.1 percent on Friday,extending the rally after executives have been making media appearances citing the auto maker has received over 10,000 bookings in the first five days of sales.
Even as the product has lower engine power,Ertiga initial response is better than expectations as it carries a competitive pricing and higher mileage tag with it,said Deepak Jain,a sector analyst at brokerage Sharekhan.
Large proportion of Ertiga sales is expected to be for the diesel variants,Jain said.
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