Maruti Suzuki sells 126,325 units in November 2016, up 14% YoY

Maruti Suzuki India has announced sales of 135,550 units in November 2016, up 12.2 percent year on year (November 2015: 120,824). This includes 126,325 units in the domestic market (+14%) and 9,225 units of exports (-9.8%). 

Industry observers had felt the government’s demonetisation exercise, announced on November 8, and which has seen reduced footfalls in showrooms across the country, would impact India’s largest passenger vehicle manufacturer. However, consumer demand for Marutis seems to be still strong. Nevertheless, the real impact of the demonetisation strategy will be seen in total December sales considering the first few days of November would have seen passenger vehicle deliveries during the Diwali festival.  

Demand bounces back

In October 2016, SUV sales had saved the blushes for Maruti Suzuki, which saw marginal sales growth of 2.2% with total domestic sales of 123,764 units (October 2015: 121,063). But demand for Maruti Suzuki cars seems to have bounced back. The company, which is experiencing a manufacturing capacity crunch at its Gurgaon and Manesar plants as well as growing competition from rival products, with attractive discounts on offer, is understood to have rejigged production for slow-selling models to accommodate demand for high-selling products like the very popular Baleno hatchback and the Vitara Brezza compact SUV.

In November 2016, the entry level duo of the Alto and Wagon R sold a total of 38,886 units, up 8.1% year on year (November 2015: 35,981). The Swift/Ritz/Celerio/Baleno/Dzire quintet sold a total of 49,431 units last month, 10.8% (November 2015: 44.626). Demand for the Dzire Tour taxi was down at 3,017 units, down 10.3% (November 2015: 3,363). Sales of the premium Ciaz sedan dipped marginally with 5,433 cars going home to new buyers (November 2015: 5,509), down 1.4% YoY. Overall, the company’s passenger cars sold a total of 96,767 units, up 8.1% year on year (November 2015: 89,479).

What is giving overall Maruti sales a boost is the consistent and surging demand for the Vitara Brezza which, along with the Gypsy, Ertiga and S-Cross, sold 17,215 units last month, a handsome 98% year-on-year increase (November 2015: 8,688).

For the eight-month April-November 2016 period, the carmaker has sold a total of 127,182 UVs, which is a staggering 132% YoY growth. The key contributor to this increase is the Vitara Brezza which, since its launch in early March 2016, has sold a total of 66,478 units till end-October. Expect November to have added over 10,000 units to this tally.   

Meanwhile, the Super Carry LCV, which was launched on September 1, sold 105 units in November, taking its total tally in April-November 2016 to 268 units.

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