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Suzuki has increased their stake in Maruti and has now reached a point where the Japanese automotive giant now owns a 55% stake in its Indian partner. The revelation suggests a possibility of Suzuki taking over India's biggest car manufacturer.
This new report came after Suzuki raised its stake in Maruti through secondary market purchases by around 0.8%. The Japanese company Suzuki wanted to increase its stake to more numbers but the Indian laws stopped them from doing so, as there are many things to be followed. If a foreign company wants to increase its stake in any Indian company beyond 55% it needs to make a further offer of another 20%, and this made Suzuki step back from further raising the stake.
There is another rule that per year a company can increase its stake only by 5%. Currently Maruti is leading the automotive sales and it is said that every second car sold in India will be a Maruti.
