MAruti Suzuki expects muted growth in FY25 due to a high base in FY24
Maruti Suzuki India Limited (MSIL) had steady growth in terms of total sales in June 2024, with a 12.43 per cent growth. The company sold a total of 179,228 units last month in comparison to 159,418 units sold in June 2023. The company sold a total of 148,195 units domestically in June 2024, which is 6.12 per cent more than 139,648 units sold in June last year. The mini segment, which includes the likes of the Alto and the S-Presso, saw a significant drop of 33.5 per cent, with compact cars sales staying flat. The sales of Ciaz dropped from 1,744 units in June 2023 to 572 units in June 2024, a de-growth of 67.2 per cent.
Coming to the sales of utility vehicles (Brezza, Ertiga, Fronx, Grand Vitara, Invicto, Jimny and XL6), the numbers grew from 43,404 units in June 2023 to 52,373 units last month, which is percentage growth of 20.66 per cent. The sales of Eeco saw a growth of 15.15 per cent while the sales for Super Carry LCV decreased from 2,992 units in June 2023 to 2,758 units last month.
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Maruti says that the its CNG models contributed to 18.4 per cent, diesel contributed to 18.1 per cent (Exports), Hybrids 2.3 per cent and EVs 2.2 per cent. Petrol of course, had the biggest contribution, of 59 per cent. The company is also exploring opportunities for strategic tie-ups with gas companies to provide further impetus to growth of CNG model sales. The company also registered its highest ever monthly exports with Africa, Latin America and Middle-East being the top three destinations. South East Asia and Oceania round up the rest of exports.
The company also revealed that the new-gen Swift, which was launched in early May 2024, has already seen wholesales of 35,800+ units till the end of June 2024, with average monthly sales of 18,000+ units. At present, there is no timeline for the launch of Swift CNG, but it is in the pipeline. The company also says that it is receiving a solid response from tier 2 and tier 3 cities for the new Swift.
The company is also having a tough time with the sales of the Jimny, with 481 units sold in June 2024. Maruti says that the 4×4 lifestyle vehicle segment is still very nascent stage leading to several promotional, experiential and marketing campaigns for the SUV.
At present, Maruti Suzuki has a total of 1.64 lakh bookings pending for deliveries. The company expects muted growth in FY25 because of a high base last year, with the target of selling 20 lakh or two million units. In FY24, the company managed to sell 19.8 lakh units, just falling shy of the 20 lakh mark.
Marut also said that it is seeing a strong response to its Dream Series Edition models of the Alto K10, S-Presso and the Celerio, which led to a growth of 17 per cent in total bookings and have garnered a total of 21,000 bookings till date. These special edition models were launched last month for a limited period of time, but Maruti is likely to extend the sales of these models into July 2024 as well.
