Tag: Maruti Suzuki

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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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Business India News Motoring

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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Business

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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India News Tech Lite Technology

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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