Maruti Suzuki reports 21.7% YoY growth in wholesale dispatches for August1 min read . Updated: 01 Sep 2020, 11:14 AM IST
- Factory dispatches also improved from July, when the company had sold 100,000 units while sales in June numbered 51,274 units. Maruti resumed production at its Manesar plant from May 12, with dispatches at 13,865 units for that month
NEW DELHI: Aided by a quick recovery in demand for entry-level cars, hatchbacks and utility vehicles, Maruti Suzuki India Ltd on Tuesday reported a 21.7% year-on-year (YoY) growth in domestic wholesales for August to 1,15,325 units.
The country’s largest passenger vehicle manufacturer had sold 94,728 units in the year-ago period.
Factory dispatches also improved from July, when the company had sold 100,000 units while sales in June numbered 51,274 units. Maruti resumed production at its Manesar plant from May 12, with dispatches at 13,865 units for that month.
The growth in wholesales though comes on a very low base, with the company reducing production due to falling demand for vehicles and transition to Bharat Stage-VI emission norms. Maruti, typically, manufactures 1.5 lakh vehicles in a month.
Hatchback sales grew 26.8% YoY to 81,665 units in August, while those of utility vehicles rose 13.5% to 21,030 units.
Exports, however, fell 15.3% to 7,930 units during August.
Despite a decent recovery in retail sales, auto makers like Maruti Suzuki and others are struggling to ramp up production due to disruption in supply chain network. Localised lockdowns, rising covid-19 cases, and increased inspection of imported parts from China have also caused problems for auto makers and their suppliers.
Mint, on Monday, reported that Maruti Suzuki plans to increase its car production to 1,45,000 units in September and 1,80,000 units in October, on hopes that sales of affordable, entry-level hatchbacks will continue to improve during the festival season as a result of a faster revival in demand in semi-urban and rural markets.
Investors have been bullish about Maruti near-term prospects since it is also likely to benefit from a shift in demand for hatchbacks given the increasing preference for personal mobility on fears of contracting infection.