Detailed narrative
Volume and Demand
Maruti sold 566,213 vehicles in Q3 FY25 — 466,993 domestic (+8.7% YoY) and 99,220 exports (+38% YoY, highest-ever quarterly exports). Retail sales were ~573,000 units with 8.3% growth (rural +15%, urban +2.5%). The festive season lifted sentiment, but underlying demand remains subdued. Entry hatchbacks saw degrowth, mid hatchbacks were flat, and only premium hatchbacks showed growth — a clear premiumization trend. CNG vehicles constituted 1 in 3 domestic cars sold. Cumulative 9M retail growth improved to 3.5% from just 0.4% in H1. Dealer inventory ended at a lean ~9 days. Management expects 3.5% growth trend to continue in Q4 but called FY26 outlook premature, noting demand is 'generally subdued and weak.'
Financial Performance
Net sales hit an all-time high of ~INR 368 billion (+15.5% YoY). Net profit was INR 35.25 billion (+12.6% YoY). EBIT margin was 10.0% vs 10.3% in Q2 FY25. QoQ margin walk: adverse — ad spend (-40 bps, Dzire/e Vitara campaigns), sales promotion (-20 bps, festive discounts), forex (-20 bps, unfavorable Yen), depreciation (-20 bps, Kharkhoda capitalization). Favorable — commodity prices (+40 bps), operating leverage (+30 bps). Discount per vehicle was ~INR 31,000 vs ~INR 29,300 in Q2. A small price hike of ~30 bps on net sales was taken for Q4. Subsidiary SMG contributed additional ~INR 57 crore PAT from interest income. 9M FY25: highest-ever net sales (~INR 1,063 billion), net profit (~INR 102.4 billion), and volume (1,629,631 units, +5% YoY).
Export Performance
Record quarterly exports of 99,220 units, nearly matching what Maruti exported in an entire year just four years ago. Commanded ~49% of India's total PV exports. Growth was broad-based across Africa, Latin America, Middle East, and ASEAN. Latin America showed particularly strong traction due to new model launches. Export revenue was ~INR 6,500 crore. Management hinted that export profitability is healthy — stating they would not have pursued such a large export portfolio if it were loss-making or low-profit. With high domestic discounting on small cars (estimated 6-7%), exports for the same models may actually be margin-accretive.
e Vitara EV and Future Strategy
Maruti unveiled the e Vitara — its first ground-up EV on the HEARTECT-e platform — at Bharat Mobility Expo 2025. Key specs: 500+ km range (61 kWh), 7 airbags standard, Level 2 ADAS, Suzuki Connect with 60+ features. Maruti will be the exclusive global manufacturer for Suzuki (and Toyota OEM), exporting to ~100 countries. 'e for me' initiative includes smart home chargers, fast charging in top 100 cities (every 5-10 km), 1,500 EV service workshops in 1,000+ cities, and nationwide roadside assistance. Management was candid that EV profitability won't match ICE for a long time due to structural cost differences. Battery will be imported initially. PLI eligibility is under evaluation. CAFE 3 norms are pending; Maruti claims readiness across BEV, HEV, CNG, and flex fuel technologies.
Product Portfolio and Premiumization
The all-new Dzire launched in November has been a standout success. It crossed 3 million cumulative production in December 2024. Pending bookings of ~20,000. Crucially, top variant (ZXI/ZXI+) mix surged from 19% to 37% — more than doubling — indicating strong premiumization pull from features like 5-star safety, electric sunroof, 360 HD camera, and the world's most thermally efficient Z-Series 1.2L engine (~25 km/l). More models have been submitted for safety testing. Wagon R celebrated 25 years with 32 lakh+ customers. Maruti achieved the milestone of 2 million units produced in calendar year 2024 — the only Indian PV manufacturer to do so.
Capacity and Capex
The Kharkhoda greenfield plant is expected to commence operations within Q4 FY25. Early capitalization of some facilities has already added ~20 bps to depreciation on a QoQ basis. This plant will be critical for e Vitara production and overall capacity expansion to support both domestic growth and the ambitious export program.