Tag: Maruti Suzuki

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EV Boom to Supercharge India’s Auto Industry

The automotive industry in the country is poised to be one of the key growth engines in towards achieving a $32-trillion GDP by 2047…reports Asian Lite News

The domestic automotive industry has crossed Rs 20 lakh crore mark in FY24 and has the potential to be worth $1.6 trillion (about Rs 134 lakh crore) by 2047, driven by electric vehicles (EVs), according to industry leaders.

The automotive industry in the country is poised to be one of the key growth engines in towards achieving a $32-trillion GDP by 2047, according to Pawan Goenka, Chairman of IN-SPACe at the Department of Space.

Addressing the Automotive Component Manufacturers Association (ACMA) event in the national capital, he said that the automotive industry has the potential to contribute $1.6 trillion by 2047.

The auto sector also contributes significantly to the direct and indirect employment generation in the country, Goenka further said, adding that the auto industry will contribute more and more to the GDP of the country from the current level of around 6.8 per cent. Over the last two decades or so, the industry has grown by 17 per cent CAGR.

The Society of Indian Automobile Manufacturers (SIAM) President Vinod Aggarwal said that the domestic auto industry has identified 50 critical components for local production in order to reduce import dependence.

As most of these items are electrical or electronics, there is a need to develop capabilities and capacities in India for such high tech items, he added.

Aggarwal told the gathering that the Indian automotive industry has crossed a landmark figure of Rs 20 lakh crore in FY24 and is contributing almost 14-15 per cent of the total GST collected in the country.

SIAM, along with ACMA, has voluntarily set targets for increasing localisation. The industry bodies are committed to reduce import content by 60 per cent to 20 per cent by 2025 from the base 2019-20 levels, thereby targeting the reduced reports to the tune of Rs 20,000 to Rs 25,000 crore in five years.

The country has become the third largest passenger vehicle market, the largest two and three wheeler market and third largest commercial vehicle market.

As the adoption of EVs increase in the country, the cost of EVs will almost match petrol and diesel vehicles within the next two years, Union Minister for Road Transport and Highways, Nitin Gadkari, earlier said at the event

Maruti Suzuki’s First EV Powers Up for 2024

Maruti Suzuki India on Tuesday said the automaker is geared up to launch its first electric vehicle (EV) with a range of 500 km per charge in January next year.

The leading automaker announced this on the sidelines of the annual session of industry body Society of Indian Automobile Manufacturers (SIAM) in the national capital.

Hisashi Takeuchi, Managing Director and CEO, Maruti Suzuki India, said that the company will will have a high-specification EV with a high-range of the order of 500 km and powered by a 60 Kilowatt-hour battery.

Maruti Suzuki India will also export EVs to markets like Europe and Japan.

The mid-size SUV, likely to be called eVX, is estimated to be priced above Rs 15 lakh, as per reports, and will take on rivals like Tata Curve.ev and Mahindra & Mahindra’s Born EV lineup.

Takeuchi said the automaker will come up with a range of solutions for its EV customers to remove their concerns on owning an EV. The company will use the strength of its network for after-sale support.

“We are going to provide a complete ecosystem for the customers and solve for range anxiety, lack of EV infrastructure and residual value of EVs,” according to the company.

Last month, Maruti Suzuki India said as India aspires to become “Viksit Bharat” by 2047, it will introduce electric cars in the next few months towards a sustainable mobility future.

R.C. Bhargava, Chairman, Maruti Suzuki India, said the company will be introducing electric cars in the next few months.

“While electric car use increases, customers should be encouraged to buy cars using strong hybrid technology, or CNG or ethanol and biogas. Pure petrol and diesel car use should be minimised,” Bhargava noted.

The domestic automotive industry has crossed Rs 20 lakh crore mark in FY24 and has the potential to be worth $1.6 trillion (about Rs 134 lakh crore) by 2047, driven by electric vehicles (EVs), according to industry leaders.

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Mixed June for Autos

Hyundai Motor India Limited (HMIL) experienced a marginal decline in sales for June 2024, with total sales of 64,803 units, comprising 50,103 domestic units and 14,700 units for export…reports Asian Lite News

India’s automotive sector experienced mixed fortunes in June 2024, with Maruti Suzuki and Mahindra & Mahindra (M&M) reporting growth, while Hyundai Motor India Limited (HMIL) saw a slight dip in their sales figures.

Maruti Suzuki reported a year-on-year sales increase for June 2024. The company sold 1,79,228 vehicles in June, up from 1,59,418 units in the same month of the previous year.

This translates to a growth rate of 12.4 per cent. The company’s total sales for the first quarter of FY 2024-25 (April to June) also saw a substantial rise, reaching 5,21,868 units compared to 4,98,030 units in the corresponding period of the previous fiscal year, marking a growth of 4.8 per cent.

Automobile major Mahindra & Mahindra.(photo:IANS/Twitter)

This continuous upward trajectory highlights Maruti Suzuki’s resilience and robust market presence.

Mahindra & Mahindra Ltd. (M&M), reported an 11 per cent increase in overall auto sales for June 2024, with total sales of 69,397 vehicles, including exports.

The company experienced substantial growth in the Utility Vehicles (UV) segment, selling 40,022 vehicles in the domestic market–a 23 per cent increase compared to the previous year.

The total sales for UVs, including exports, stood at 40,644 vehicles. Domestic sales for commercial vehicles also remained robust, with 20,594 units sold.

Veejay Nakra, President of the Automotive Division at M&M Ltd., expressed satisfaction with the company’s performance, stating, “We sold a total of 40,022 SUVs in June, a growth of 23 per cent and 69,397 total vehicles, a 11 per cent growth over last year. June has been a momentous month, as we rolled out the 200,000th XUV700 from our facility. We also celebrated 25 years of Bolero Pik-Ups, a category creator and a market leader in the LCV segment.”

Hyundai Motor India Limited (HMIL) experienced a marginal decline in sales for June 2024, with total sales of 64,803 units, comprising 50,103 domestic units and 14,700 units for export.

This slight dip follows a successful first half (H1) of 2024, during which the company achieved a 5.68 per cent year-on-year growth in overall sales, totaling 3,85,772 units.

Automobile major Mahindra & Mahindra.(photo:IANS/Twitter)

Tarun Garg, COO of HMIL, highlighted the company’s achievements, stating”We closed H1 of CY2024 with an overall sales growth of 5.68 per cent Year-on-Year. SUVs have contributed strongly, accounting for 66 per cent of our domestic sales. The new Hyundai CRETA has been a key driver for Domestic H1 sales with 91,348 units sold, a growth of 11 per cent over same period last year.”

The mixed sales figures for June 2024 highlight the dynamic nature of India’s automotive market.

While Maruti Suzuki and M&M’s robust growth demonstrates the resilience and adaptability of these companies, Hyundai’s slight decline underscores the competitive pressures and shifting consumer preferences in the market. (ANI)

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Maruti Suzuki Sales Dip 2% in May

India’s largest automotive brand saw domestic passenger sales increase to 1,44,002 units last month. It was 1,43,708 units in the same month last year….reports Asian Lite News

Leading automaker Maruti Suzuki, on Saturday, reported sale of 1,74,551 units in May, down by 2 per cent (year on year) from 1,78,083 units in the same period last year.

India’s largest automotive brand saw domestic passenger sales increase to 1,44,002 units last month. It was 1,43,708 units in the same month last year.

The company reported 9,902 units of combined sales from the Alto and S-Presso models. It was a combined 12,236 units in May last year.

The combined sales figures of Baleno, Celerio, Dzire, Ignis, Swift, Tour S, and WagonR models declined to 68,206 units from 71,419 units in May 2023.

However, the SUV segment showed robust growth compared to compact and mini-segment cars.

The combined sales of Brezza, Grand Vitara, Ertiga, S-Cross, and XL6 were 54,204 last month, as against 46,243 units in the same period last year.

Sales of Eco models were at 10,960 units in May as against 12,818 units a year ago.

Light commercial vehicle Super Carry stood at 2,692 units as against 2,888 units in the same period last year.

The company’s exports last month were at 17,367 units, from 26,477 units in May 2023.

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Maruti’s Epic New Swift Storms In

The sporty design of the Epic New Swift features a unique ‘wrap-around character line,’ bold stance, and signature silhouette…reports Asian Lite News

Maruti Suzuki India Limited (MSIL), has launched the highly anticipated Epic New Swift, setting new benchmarks in the hatchback segment.

The car is available in a wide range of colors, including two new additions – Luster Blue and Novel Orange.

Speaking at the launch event, Hisashi Takeuchi, Managing Director and CEO of Maruti Suzuki India Limited, expressed his pride in presenting the Epic New Swift.

He highlighted the Swift’s legacy since its inception in 2005 and its pioneering role in the premium hatchback segment.

Takeuchi said, “Since its launch in 2005, the Swift brand has been a symbol of excellence in the Indian automotive landscape. It pioneered the dynamism in the premium hatchback segment and captured the hearts of millions of customers. Our vision for the Epic New Swift is to build on its strong legacy by redefining the Joy of Mobility for Swift lovers and driving enthusiasts alike.”

He added, “The all-new Z-Series engine is a futuristic powertrain that brings about a new dimension of performance and sustainability, making it the most efficient hatchback in its segment. We are committed to meet and exceed our customers’ aspirations, and will continue to steer the transformation of the Indian automobile industry by introducing advanced technologies for delivering superior performance.”

Takeuchi emphasized the company’s commitment to delivering superior performance and sustainability through the all-new Z-Series engine, which makes the Epic New Swift the most fuel-efficient hatchback in its segment.

Partho Banerjee, Senior Executive Officer, Marketing and Sales, MSIL, commented on the significance of the launch, stating, “With over 29 lakh customers in India, the Swift brand name holds a special place in the hearts of customers. Each generation of this premium hatchback has been ahead of its time, anticipating and addressing evolving customer aspirations. With the introduction of the Epic New Swift, we are building on the rich legacy and raising the benchmark.”

He added, “The revolutionary Z-Series engine offers the best of both the worlds by combining performance with higher fuel-efficiency and lower emissions. Armed with a host of safety features such as 6 airbags, 3-point seatbelts for all seats, ESP, ABS with EBD, Hill Hold Assist, the Epic New Swift underscores our commitment to constantly offer enhanced occupant safety. These, in addition to a feature-rich cabin, make the Epic New Swift the most compelling driver-oriented product in its segment.”

The sporty design of the Epic New Swift features a unique ‘wrap-around character line,’ bold stance, and signature silhouette. Smoky LED projector headlamps, boomerang LED DRLs, glossy black front grille, and precision-cut two-tone alloy wheels add to its allure.

The cabin of the 4th Generation Swift boasts a fresh layout with a ‘centre floating design’ for the dashboard, piano black treatment, and satin matt silver inserts.

The driver-oriented dashboard, flat-bottomed steering wheel, 22.86cm (9inch) Smartplay Pro+ infotainment system, rear AC vents, cruise control, and keyless entry ensure comfort and convenience for all passengers.

The Epic New Swift comes equipped with a comprehensive array of safety features, including six airbags, Electronic Stability Program+ (ESP®), Hill Hold Assist, Anti-lock Braking System (ABS) with Electronic Brakeforce Distribution (EBD) and Brake Assist, and 3-point seat belts for all seats with reminders. Additionally, it features a reverse camera with wider view for added convenience.

Powered by the brand-new Z-Series engine, the Swift delivers exceptional performance with low emissions and enhanced fuel efficiency. The 1197cc engine offers 60 kW of peak power and 111.7 Nm of peak torque. With an exceptional fuel efficiency of up to 25.75 km/l*, the Epic New Swift marks a 14 per cent improvement over its predecessor.

The Epic New Swift promises cutting-edge technological features, including the 22.86cm (9inch) SmartPlay Pro+ infotainment system with wireless Apple CarPlay® and Android Auto™#, wireless phone charger, Suzuki Connect with voice commands, and ARKAMYS surround sense. (ANI)

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Maruti Suzuki back on track

Backed by recent SUV launches, the company has regained leadership position in SUV segment during 1QFY24…reports Asian Lite News

After two consecutive years of market share loss, Maruti Suzuki is at the cusp of market share recovery led by new launches, JM Financial Institutional Securities said in a research.

Recently introduced Jimny, Fronx and Invicto have received good customer response. Pending order book for Brezza, GV, Jimny, Fronx, Invicto, Eritga stands at 48k/27k/23k/22k/8k/93k units, respectively.

Backed by recent SUV launches, the company has regained leadership position in SUV segment during 1QFY24, the report said.

Pending order book as at Jun’23 stands at 355k units (vs. 412k units at the end of 4Q) led by higher demand for recent launches and CNG models (27 per cent penetration for MSIL). 1QFY24 witnessed lost sales of 28k units owing to shortage of electronic components.

The company indicated that chip supplies have improved significantly and it remains hopeful of normalised supplies going ahead. Dealer inventory stands at a normal level of four weeks (125k units), the report said.

Maruti Suzuki gained UV market share by 3.3ppt QoQ to 23 per cent. Overall, the company remains upbeat on sales momentum going ahead led by healthy demand for new/recent SUV launches. Demand for entry segment continues to remain muted. Overall, PV industry is expected to grow between 5-7 per cent in FY24 and MSIL is expected to grow ahead of the industry, the report said.

With the introduction of Jimny, Fronx and Invicto, MSIL intends to further strengthen its presence in the B-segment (regained leadership position in SUVs in 1QFY24). Benefit of richer portfolio mix, softening commodity costs and higher operating leverage is expected to aid margins going ahead, it said.

Stable growth in domestic PVs and a favorable product lifecycle augur well for MSIL. We expect market share gains and margin recovery in FY24, led by an improvement in supplies, a favorable product lifecycle, mix and operating leverage, Motilal Oswal Financial Services said in a report.

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Maruti Suzuki rejigs product strategy

After hatchbacks, Maruti Suzuki to hatch more SUVs.

Maruti Suzuki’s market share, which was at 51 per cent in 2019, has gone down to 41 per cent this September…reports Asian Lite News

With the petrol-powered small car/hatchbacks buyers affected and others opting for sport utility vehicle (SUV), Maruti Suzuki India Ltd will increase its CNG powered models as well as SUVs, Maruti-Suzuki Chairman R.C. Bhargava said on Friday.

He also said the small car segment which was at about 70 per cent for the company will go down to about 65 per cent which is also a substantial size.

Speaking to reporters, he noted that there has been a degrowth in the small car hatchback segment while SUV segment logged major growth.

“Next year, there will be degrowth in the hatchback segment. The purchasing power of hatchback segment has been affected and hence, is not growing. The production capacity will come down from 70 per cent to what the market needs,” Bhargava said.

Nevertheless, hatchbacks are still a large part of Maruti Suzuki’s business.

According to him, the decline in the small car market began three years ago and inflation will make it worse affecting this market segment.

He said the change in the composition of sales – decline in small cars and increase in SUVs – is due to the various price increases.

Maruti Suzuki’s market share, which was at 51 per cent in 2019, has gone down to 41 per cent this September.

Bhargava did not agree that the company was late in entering the electric vehicle segment -it plans to launch its model in 2025 – even as Tata Motors has launched a mass market model.

“The purchasing power of hatchback segment has been affected and hence, is not growing. The production capacity will come down from 70 per cent to what the market needs,”

“We are localising the components, looking at the infrastructure development in the country. An electric vehicle customer should not face issues,” he said.

Queried about the inventory build up of the small cars, Shashank Srivastava, Senior Executive Director, Marketing & Sales said there has been a bit of build up as there is mismatch of supply and demand.

He did not agree that the increase in compressed natural gas (CNG) prices will result in higher demand for diesel-powered models.

Srivastava said the diesel segment remains at 18 per cent and CNG continues to be a good economical option against petrol and diesel vehicles.

He said Maruti Suzuki will launch more CNG-powered models based on the waiting period for the existing ones.

On the SUV front, Bhargava said Maruti Suzuki will increase its offerings and newer models will be showcased at the upcoming AutoExpo.

Queried about the impact of rupee depreciation against the dollar, he said that the Indian currency depreciation is much less as compared to other currencies.

The rupee has strengthened against the yen, which has resulted in imports becoming cheaper for Maruti Suzuki.

Bhargava said the company is targeting two million units this year though the major challenge is the supply of semiconductors.

As regards the used car segment Srivastava said the used car pool has gone down.

Meanwhile, the company logged an operational revenue of Rs 29,930.8 crore and a net profit of Rs 2,061.5 crore for the quarter ended on September 30, 2022.

For the previous year’s corresponding period, Maruti Suzuki’s total operational revenue stood at Rs 20,538.9 crore and a net profit of Rs 475.3 crore.

During the quarter under review, the company had sold 517,395 vehicles — domestic 454,200 units, exports 63,195 units.

Shortage of electronic components impacted production by about 35,000 vehicles in this quarter.

The same period previous year was marked by acute shortage of electronic components and consequently the company could sell a total of 379,541 units comprising 320,133 units in domestic and 59,408 units in export markets.

Pending customer orders stood at about 412,000 vehicles at the end of this quarter out of which about 130,000 vehicle pre-bookings are for recently launched models, the company said.

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Suzuki focus on CNG segment amid petrol price rise

The automobile major also plans to foray into the EV segment by 2025….reports Asian Lite News

Automaker Maruti Suzuki is currently focused on the CNG segment to fulfil the demand triggered by rising petrol prices as well as heightened concerns over environmental protection.

The automobile major also plans to foray into the EV segment by 2025.

In a conversation with IANS, Maruti Suzuki India’s Senior Executive Director, Sales and Marketing, Shashank Srivastava, said that demand for CNG cars has gone up dramatically due to the favourable cost of running such vehicles.

“At current prices, the running cost of a petrol car is around Rs 5.25 for a kilometre; for CNG it is one third of the cost of petrol,” Srivastava said.

“We are trying to get our production numbers in line with the consumer demands for CNG. Year before last, we sold 106,000 CNG cars; last year we sold 162,000; this year we will be doing 235,000 with an intent to further raise the bar in 2023,” he added.

Notably, the company does not produce any diesel car and only offers petrol and CNG fuelled models.



On the company’s plans to enter the EV segment, Srivastava said: “We have announced that by 2025, we will bring out our first EV.”

Till now, the company has not disclosed the specifications of its upcoming EV.

Besides, he said that at present, the segment faces high acquisition cost and unavailability of large-scale charging infrastructure.

“We have to consider two major barriers as of now — cost of EV acquisition and infrastructure for charging,” he said.

In addition, the company plans to increase its share of the fast-growing SUV segment.

“We plan to expand our SUV portfolio. The segment has grown by 40 per cent this year (2021-22). Our SUV portfolio is not diverse, we only have 2 out of the 46 available SUV models in the Indian market. But we are a market leader in entry level SUVs due to Vittara Brezza,” Srivastava said.

ALSO READ: Maruti Suzuki reports marginal increase in production

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Maruti Suzuki reports marginal increase in production

“The shortage of electronic components had a minor impact on the production of vehicles during the month,” the company said in a statement…reports Asian Lite News

Automobile giant Maruti Suzuki India reported a rise in production during last month on a year-on-year basis.

The rise comes despite a major microchip shortage that has hindered production all throughout last year.

In January 2022, the company’s total production of passenger, as well as commercial vehicles, rose to 161,383 units from 160,975 units manufactured during the corresponding month of last year.

Segment-wise, the company produced 157,668 units of passenger vehicles during the month under review, up from 156,439 units manufactured in January 2021.

“The shortage of electronic components had a minor impact on the production of vehicles during the month,” the company said in a statement.

The global phenomenon of semiconductor shortages has been blamed on the exponential rise in demand for personal electronics such as cellphones and laptops during the ongoing pandemic. Semiconductors play a critical part in the production of internal combustion engines and are an integral part of all kinds of sensors and controls in any vehicle.

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