July 1, 2013: The country’s largest carmaker Maruti Suzuki continues to bear the pressure of a slowing economy, rising fuel prices and growing competition. The company has posted a decline of 7.8 percent in its June 2013 domestic sales. It sold a total of 77,002 units during the month compared to 83,531 units in June 2012. The carmaker has seen sales fall in all segments. The entry level pack (Maruti 800, Alto, A-star and Wagon R) saw sales fall by 8.4 percent to 31,314 units (June 2012: 34,198), the premium hatchbacks (Swift, Estilo, Ritz) were down by 7.2 percent to 20,996 units (June 2012: 22,624), the SX4 down 23 percent to 314 units ((June 2012: 408) and the popular Dzire down by 8.7 percent with sales of 12,548 units (June 2012: 13,741). As a result, Maruti’s overall passenger car sales were down 8.2 percent to 65,172 units compared to 70,977 units sold in June 2012.

The UV category (which has the Ertiga MPV along with the Gypsy and Grand Vitara) saw sales down by 11.4 percent to 4,997 units (June 2012: 5,638) while sales of the Omni and Eeco van duo fell marginally by 1.2 percent to 6,833 units (June 2012: 6,916). On the export front, Maruti has taken a 43 percent hit with sales down to 7,453 units compared to 13,066 units exported in June 2012.

Maruti has been witnessing a sales decline since the past few months and has been making efforts to stem it. On June 15, it rolled out the CNG-powered Ertiga Green, the sixth factory-fitted CNG vehicle after the Alto, Wagon R, Eeco, SX4 and Estilo. And, in a bid to boost new car sales, the carmaker had also billed June 2013 as the ‘Exchange Month’ wherein its countrywide network of True Value showrooms and dealers were to reach out to over 500,000 customers. The initiative was to go beyond the metro cities to cover Tier 1 and Tier 2 locations.

The company had also carried out a shutdown at both its Gurgaon and Manesar plants on June 7, ahead of a planned maintenance shutdown between June 17-22 to adjust inventory levels in response to falling sales. At present, Maruti has a total installed annual capacity of 15 lakh units, which will stand increased to 17.5 lakh units by September this year when its third unit at the Manesar plant goes on stream.