Maruti Suzuki sales dip 10% in June, up 5.4% in Q1 FY’17

June 2016 saw Maruti Suzuki India report its lowest monthly sales in two years as the country’s largest carmaker lost production due to the disruption in component supply and the scheduled maintenance shutdown during the month.

The carmaker reported domestic sales of 92,133 units in June 2016, a double-digit drop of 10.2% year on year (June 2015: 102,626). This was Maruti’s worst sales performance since June 2014, when it sold 90,093 units in the domestic market.

As is known, the company was adversely impacted in early June due to a fire at its key supplier Subros’ Manesar plant, which led to the suspension of production at Maruti’s plants for close to 10 days which included a maintenance closure. The company had advanced the regular bi-annual maintenance closure of its plants, earlier scheduled from June 27 to July 2 to June 6 to 11.

Consequently, the company was estimated to have seen a production loss of 13,000 units. Given the current high demand for Maruti cars and the subsequent low inventory levels, the impact was bound to hamper sales during the month. Maruti has said that it expects to recover the production loss during the course of the year.

In the reporting month, Maruti has seen a sales decline for all its segments other than UVs. While the entry level duo of the Alto and Wagon R sold a total of 27,712 units, down 19.3% (June 2015: 34,336), the compact cars – Swift, Ritz, Celerio, Baleno and Dzire – sold a total of 39,971 units, down 12.5% (June 2015: 45,701). Demand for the Ciaz was also down – 2,800 units compared to 3,700 units in June 2015 (-24.3%). Only the UVs – Gypsy, Ertiga, S-Cross, Vitara Brezza) which sold 9,708 units, were in positive territory (75.5%).

For the first quarter of FY2016-17, the company has sold a total of 322,340 units, up 5.4% (June 2015:305,694).  However, exports during the quarter were down 26.7% at 26,103 units.

Meanwhile, Maruti says it is gradually stepping up production of the Baleno and Vitara Brezza to service the pending demand for these two models. Both these models command long waiting periods ranging from 6-9 months at present.

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