Maruti sales rise 14.2% in November
The overall volumes were also propped up by a strong growth in utility vehicles, which grew at a brisk 98.1% to 17,215 units over last year
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Mumbai: Maruti Suzuki India Ltd’s sales in the domestic market rose 14.2% to 126,325 units in November compared to the year-ago period, the company said in a statement on Thursday.
Besides entry-level cars such as Alto and Wagon R, sales of which advanced 8% and 10%, respectively, the overall volumes were also propped up by a strong growth in utility vehicles, which grew at a brisk 98.1% to 17,215 units over last year.
Exports at the local arm of the Japanese car maker dropped 9.8% to 9,225 units over the year-ago period. Car sales in India have been surging at a brisk pace. It may, however, face speed bumps due to demonetisation.
To be sure, retail sales are already showing a steep decline. Car makers in India report dispatches to dealers and not end buyers.
In a note on the impact of demonetisation on auto sales, IIFL Institutional Equities Research on 30 November said the brokerage’s extensive checks across 40 auto dealers revealed that retail sales are down 30-60% across segments in the first three weeks since 9 November. It said there has been no material improvement in demand over the course of these three weeks pointing out that SUV sales have borne the maximum brunt with retail sales having almost halved. Two-wheelers, tractors and commercial vehicles are down 30-50% and car sales are down 15-25%.
At 10:30am, Maruti Suzuki’s shares were up 0.39% to Rs5,284.45. The benchmark Sensex was up 0.11%.