New Delhi, Aug. 28 -- The Maruti Suzuki India Ltd stock made another high of Rs.14,895 on the NSE on Thursday after it finally entered the electric car manufacturing race. While some of the gains may have been in anticipation of the inauguration of its electric vehicle plant in Gujarat, the stock has rallied by 14% since 14 August on potential cuts in the goods and services tax rates.

Electric passenger vehicle sales contributed only about 3% of total car sales in India in the June quarter (Q1 of FY26), as per Society of Indian Automobile Manufacturers data on dispatches from factories to dealers.

So, despite the low penetration in India, why is the EV plant an important milestone for Maruti? The EV plant is the first one for both Marut...