Maruti Suzuki December 2023 despatches down by 6.5% in a stock-correction move

Maruti Suzuki India (MSIL) reported sales of 104,778 units in December 2023, registering a 6.5 percent Year-on-Year (YoY) decline over December 2022’s volume of 112,010 units. 

The company’s entry-level Alto and S-Presso models continued to be distressed, with volumes plummeting to a mere 2,557 units (December 2022: 9,765), and registered a YoY de-growth of almost 74 percent – attributed majorly to a major stock correction.

As per Shashank Srivastava, Senior Executive Officer, Sales and Marketing, MSIL, “Since there was a huge build-up of stock, this correction was long overdue, and now the stock level in the small-car segment is very low both in the network, as well as at the factory.”

MSIL’s septet of compact cars – Baleno, Celerio, Dzire, Ignis, Swift, Tour S, and Wagon R – went home to 45,741 buyers, registering a 20.5 percent YoY decline (December 2022: 57,502) last month. While the mid-size Ciaz sedan too remained on the decline and clocked only 489 units (December 2022: 1,154/ -57.6%), it is the utility vehicles that saved the blemishes for the company.

The company’s range of utility vehicles, including the Brezza, Ertiga, Fronx, Grand Vitara, Invicto, Jimny, S-Cross, and XL6 – clocked sales of 45,957 units in December 2023, registering a notable 39.2 percent YoY growth over 33,008 units sold in December 2022. Maruti Suzuki’s sole van – Eeco – remained flat at 10,034 units in December 2023 (December 2022: 10,581).

According to Srivastava, “The SUV contribution to the overall passenger vehicle sales grew to 48.6 percent in CY23 (CY22: 42%), while hatchbacks de-grew from 34.8 percent to 30 percent in the same period. Having said that, the retail of entry-level cars was 10x that of the December wholesales.”

The company says that it registered a 12.3 percent growth in December retail which closed at 226,428 units for MSIL (December 2022: 201,697 units) – making it the highest-ever retail figure for the carmaker. “December retail was very good, and that was our objective – to bring the inventory down – and we have been able to successfully achieve that,” Srivastava said in a group media interaction.

Moreover, with an estimated industry-wide December retail of 442,800 units – the highest-ever in the industry – the December 2023 retail is likely to have achieved a 7.8 percent YoY growth, bringing down the inventory levels to 176,500 units from over 331,000 units at the beginning of the last month.

“The MSIL stock has reduced significantly from being pegged at 169,100 units in the network to around 45,000 units or around 13 days’ stock level. We are looking forward to starting the last quarter with a lower stock, and are hopeful to have a good Q4 FY2024,” highlighted Srivastava.