homeauto NewsMaruti Suzuki clocks better than industry growth in May but June car sales may be muted
Maruti Suzuki clocks better-than industry growth in May but June car sales may be muted
Maruti Suzuki's Senior Executive Officer, Marketing and Sales, Shashank Srivastava, said June numbers could be impacted due to semiconductor availability for some models.
India’s largest carmaker Maruti Suzuki India posted a 10 percent increase in total wholesales at 1,78,083 units in May. Total domestic passenger vehicle sales were higher 15 percent to 1,43,708 units as compared with 1,24,474 units in the same month last year.
Shashank Srivastava, Senior Executive Officer, Marketing and Sales, Maruti Suzuki, said, retail also was pretty good in May at 136,600 units compared with 123,000 last year, a growth of about 11 percent.
The wholesale numbers of passenger vehicles were close to 1.44 lakh compared to 1.24 lakh in the same month last year, implying growth of almost 16 percent. “When you compare it with the industry, actually Maruti Suzuki grew better than the industry,” he told CNBC-TV18.
Srivastava, however, said June numbers could be impacted due to semiconductor availability for some models. “We will also have to see the effect of the increased auto loan rates, which is now coming through after the repo rate increases that have been being affected in the system from May onwards last year,” he said.
Talking about Maruti’s SUV segment, he said, the market share grew a percent and now it is at 43 percent of the overall market share. He said the SUV segment was one of the big pillars of the carmaker’s strategy to further increase market share towards 45 percent and in the medium term to 50 percent.
Like last year, Maruti’s market share in SUVs was only 12.1 percent, but in April to May period its SUV market share crossed the 20 percent mark, Srivastava noted and reiterated that the target was to achieve 25 percent market share.
Srivastava also said that there is still pressure on the lower-end and affordable segment in PVs. According to him, the affordability factor has come down which means that the increase in the prices in this segment has been disproportionate compared with the increased income level of the people buying these cars. Therefore, one of the reasons why the segment has declined to almost 33-34 percent of the market as against almost 40 percent a couple of years back.
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