Maruti Suzuki India bounces back, clocks 25.7% YoY growth in January

Maruti Suzuki India, which had recorded a 4.4% sales decline in December 2016, has bounced back and how. The country’s largest carmaker has reported domestic sales of 133,768 units, up 25.7% year on year (January 2016: 106,383). Importantly, sales of all its vehicles, other than the Dzire Tour taxi, are back in the black.

The bread-and-butter duo of the Alto and Wagon R, sold 37,928 units in January 2017 (January 2016: 34,206), up 10.9% YoY, indicating return of consumer demand for the entry level cars. 

Sales of the six compact cars comprising the Swift, Ritz, Celerio, Ignis, Baleno and Dzire posted 25.2% growth at 55,817 units (January 2016: 44,575). The Dzire Tour, which is sold only as a taxi, sold 3,001 units, down 15.3% (January 2016: 3,545).

The Ciaz premium sedan went home to 6,530 buyers last month, up 20.2% on January 2016 sales of 5,431 units. The two vans – Omni and Eeco – have given a fillip to overall sales numbers with sales of 14,179 units, up 35% (January 2016: 10,512).

Meanwhile, Maruti Suzuki has a problem of plenty when it comes to the UVs, thanks to surging demand for its first-ever compact SUV, the Vitara Brezza. Total UV sales (Gypsy, Ertiga, S-Cross, Vitara Brezza) zoomed 101% YoY to 14,179 units (January 2016: 10,512).

Maruti's UVs have, for the past few months, buffered slowing sales of its entry level cars but now it seems henceforth they will take on a new trajectory. For the past year or so, Maruti Suzuki, with its combined 1.5 million units manufacturing capacity at the Gurgaon and Manesar plants was running at full capacity utilisation. With the new Gujarat plant beginning commercial production from today, starting with the premium Baleno hatchback, the carmaker will be able to increase production of the much-in-demand Vitara Brezza, which continues to have a sizeable waiting period.      

For the 11-month April 2016-Janaury 2017 period, the company has sold a total of 1,195,347 units, a 10.9% YoY growth over the year-earlier period.