Rahul Bharti, the Executive Director of Corporate Affairs at Maruti Suzuki India, forecasts a 6% year-on-year growth in the automotive industry's volume by the year's end. Speaking to CNBC-TV18 on the sidelines of the Bank of America India Conference 2023, Bharti highlighted that Maruti has grown faster than the industry from April to October, with an 11.4% increase compared to the industry's 6.4%.
Including all competitors, the industry's growth stands at 8.4%.
"We hope that the industry will register a growth rate of around 18% until about five days after Diwali, which is quite good," he said.
Last month, Maruti said it expects the auto industry to clock in
sales of a million cars by Bhai Dooj, the last day of Diwali. This implies an 18% year-on-year growth in the festive season that began with Onam in August.
Maruti achieved an 11.2% net EBIT ratio, marking a 400 basis point improvement. Bharti attributed this to strong operating leverage, where increased volumes spread fixed costs more thinly, resulting in a 130 basis point boost. Additionally, a previously favourable commodity market contributed, though he noted a recent uptick in steel prices
In the overall market segment, the company currently holds a 43% market share and aims to return to a 50% market share by the end of the decade.
Shares of Maruti Suzuki have remained flat over the past month.
(Edited by : Shweta Mungre)
First Published: Nov 6, 2023 4:48 PM IST
