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New Brezza launch to help sustain outperformance

Maruti Suzuki (MSIL) launched the updated Brezza in India on 24th July 2026, priced from INR 0.74-1.37m, ex-showroom. We outline below the key changes in this model relative to its older variant and explain why this is a critical upgrade for MSIL.

What has changed?

The most significant change is the addition of a 998cc Boosterjet turbo-petrol engine, offering Brezza a more performance-oriented option that also qualifies for the lower 18% GST rate (vs 40% for the 1.5-liter option). The existing 1.5- liter naturally aspirated petrol and factory-fitted CNG powertrains continue, but both now feature six-speed manual transmissions. The facelift also introduces a larger 10.1-inch infotainment system, ventilated seats, improved connected-car technology, and an underbody-mounted CNG cylinder that frees up luggage space. In addition, the model has received a five-star Bharat NCAP rating for both adult and child occupant protection. While six airbags were originally limited to higher variants of the second-generation model, they are now standard across the range in the 2026 facelift.

What has stayed the same?

The 2026 model continues with the same compact, upright SUV body introduced with the second-generation model in 2022. The existing 1,462cc K15C petrol engine continues to be a central part of the Brezza range. The old Brezza already offered an electric sunroof, head-up display, 360-degree camera, wireless charging, SmartPlay infotainment, Suzuki Connect, and rear AC vents, although several of these have been upgraded in the facelift.

Our view

Post GST rate cuts, the compact SUV segment had received a sharp boost in demand relative to other segments. MSIL’s Brezza was unable to capture this well given the relative GST differential; for Brezza, GST came down to 40% from earlier 45%, while the same for competing products (Venue/Nexon, which were in the 1.2-liter category) came down from 28% to 18%. With the introduction of the 1-liter booster jet engine, Brezza will also qualify for the lower 18% GST, which would help it compete effectively with peers. The underbody CNG kit is also a meaningful change, as it frees up critical boot space. The five-star NCAP rating further strengthens customer confidence in the vehicle’s safety. With this upgrade, we expect Brezza to ramp up its volumes to around 20K per month from the current ~15k per month levels. Supported by this, a revival in small cars, and its healthy new launch pipeline, we expect MSIL to sustain its outperformance in the coming quarters. A sustained market share recovery is likely to, in turn, drive a re-rating of the stock, in our view. Further, following a relatively weak 1Q, margins are expected to normalize, given the moderating raw material costs and steady volume growth. We expect MSIL to deliver a 20% earnings CAGR over FY26-28. We reiterate our BUY rating with a TP of INR17,059, valued at 26x FY28E EPS.

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