Maruti Suzuki

Maruti Suzuki reported Net Sales of INR 355,891 million for Q2 FY25, a marginal 0.15% increase year-on-year. Profit Before Tax (PBT) reached a record high of INR 51,005 million, growing by 6.3% YoY. However, Net Profit After Tax (PAT) saw a significant decline of 17.42% to INR 30,692 million, primarily due to an INR 8,376 million provision related to changes in tax rates on long-term capital gains. Operating profit margin (EBIT) sequentially decreased to 10.3% from 11.1% in Q1 FY25, impacted by adverse commodity prices (-50 bps) and higher sales promotion expenses (-80 bps).

Total vehicle sales in Q2 FY25 were 541,550 units. Domestic market volume declined by 3.9% year-on-year to 463,834 vehicles, reflecting muted PV demand. In contrast, export volume grew robustly by 12.1% to 77,716 vehicles, with Maruti Suzuki holding nearly 40% of India's total passenger vehicle exports. For the ongoing festive period (Shradh till Diwali), the company anticipates a 14% year-on-year growth in retail sales and expects to close FY25 with 3-4% retail sales growth. Inventory levels are projected to be within one month by the end of October.

The company continues to enhance customer convenience by augmenting its sales and service network, recently inaugurating its 500th NEXA sales outlet. Maruti Suzuki's total sales network (ARENA, NEXA, and Commercial) now extends to 3,925 outlets across 2,577 towns and cities. The Manesar manufacturing facility achieved a cumulative production of 1 crore units in just 18 years, making it the fastest among Suzuki's global automobile manufacturing facilities to reach this milestone. Additionally, the company expanded its extended warranty programs to cover vehicles for up to 6 years or 1,60,000 km.

Consumer preference for CNG vehicles continues to rise, with 1 in 3 cars sold domestically in Q2 being a CNG model. Maruti Suzuki now offers 14 S-CNG models, including the new 4th generation Epic New Swift. The company plans to launch 5-6 new EV models by the end of the decade, averaging one per year, with the first high-spec EV to be showcased at the Bharat Mobility Show in January. The Kharkhoda plant, with a capacity of 250,000 units per annum, is on track for commissioning by the end of this financial year.

Rural demand is currently outperforming urban, although the small car segment continues to face an affordability challenge. Despite this, Maruti Suzuki has managed to arrest the decline in small car sales through limited edition models, with Wagon R performing well. The company noted a convergence in consumption patterns between 'rural' and 'urban' areas, with NEXA showrooms now being opened in up-country regions, indicating a shift towards higher-ticket vehicles even in these markets.

Maruti Suzuki reaffirmed its commitment to green logistics by surpassing 2 million cumulative vehicle dispatches using railways, saving 270 million liters of fuel over the last 10 years. The company commenced exports of its 'Made-in-India' FRONX SUV to Japan, marking it as the first SUV from Maruti Suzuki to launch there. The FRONX SUV also set a new record by reaching 2 lakh sales in just 17.3 months, while the Grand Vitara achieved 2 lakh unit sales in the mid-SUV segment since its launch.