While the carmaker Maruti Suzuki may have seen a positive trend in the demand for its cars, the company may have to ramp up its production. This is because the carmaker is believed to have just 21,000 units approx. with very little factory inventory, which could lead to a long waiting period for customers.
The company had recently detailed a breakup of the sales pattern in Q3 FY2020 that showed an increase from 43 percent to 48-49 percent for first-time buyers, compared to Q3 FY2019, but the replacement buyer share, however, has seen a decline to 19 percent from about 26 percent for the same period. According to the company, the average age of pre-owned cars has gone up from the earlier 8 years to 9.2 years.
Despite a recovery seen in the past five months (month on month), the demand for passenger cars is still far below the peak by about 30 percent. The management right now is careful about passing on the increasing costs as it may lead to a dampening of market demand. The carmaker, however, went on to hike the ex-showroom prices in January of its models across the entire product portfolio. Depending on the models, the revised prices are between 1-6 percent that ranges between INR 5000 to 34000 approx.
Maruti Suzuki India posted a year-on-year as well as sequential improvement in its Q3 financial performance. The net sales of Q3 FY2021 were up by 13.2 percent YoY and Q3 net profit was up 24.1 percent.
The company sold 495,897 vehicles in Q3, up by 13.4 percent compared to the same period last year and the sales in the domestic market stood at 467,369 units in Q3 FY2021, which is up by 13 percent from Q3FY2020. The exports, on the other hand, stood at 28,528 units, which is higher by 20.6 percent compared to Q3FY2020.
Maruti Suzuki’s total sale of 965,626 vehicles has seen a downshift of 18 percent compared to the same period last year.