Maruti Suzuki India's entry-level car volumes have risen nearly 2.4 times following the ramp-up of production at its Kharkhoda facility, a development the company says validates its long-held belief that demand for affordable passenger vehicles remains intact despite the industry's shift towards SUVs and premium products.
The country's largest carmaker posted record sales of 242,688 units in May, including 193,535 units in the domestic market, the highest monthly volumes in its history.
"If being a brand we are able to provide the right product at the right price, there is a huge market for the small car," said Partho Banerjee, Senior Executive Officer, Marketing & Sales, Maruti Suzuki India.
The company had faced supply constraints through much of the previous financial year, particularly in entry-level models. With production improving, Maruti said volumes of the Alto and S-Presso have increased nearly 2.4 times, helping it address demand that it was previously unable to serve.
Small Cars Only One Part of the Story.
Sales in Bharat markets grew 55%, taking their contribution to 53.2% of total volumes. CNG sales touched a record 78,000 units, SUV sales rose around 57%, e-Vitara bookings doubled, while exports increased 34.3% to 41,914 units.
Bharat accounts for over half of sales.
Demand from smaller towns and semi-urban markets remained a key growth driver.
Maruti reported 55% growth from Bharat markets and said they now account for 53.2% of its sales.
"It is not rural, it is Bharat. That is the right word to be used and we are seeing good traction in Bharat," Banerjee said. The company has spent the past two years expanding its reach beyond major cities, opening nearly one customer touchpoint every day across the country.
CNG Momentum Gathers Pace
At the same time, rising fuel costs continue to push customers towards alternative fuels.
Maruti sold a record 78,000 CNG vehicles in May and said bookings have increased by around 40% in recent weeks. "This month we have done an all-time high sale of CNG vehicles, which is close to 78,000 units," Banerjee said.
In the WagonR, CNG variants now account for nearly half of total sales, reflecting the growing importance of running costs in purchase decisions.
SUV Growth Remains Robust
Maruti's SUV portfolio continued to deliver strong growth.
The company reported SUV sales growth of around 57%, with monthly volumes approaching 54,000 units. Management said products such as the Grand Vitara continue to strengthen its position in the mid-SUV segment. The growth comes as Maruti prepares to expand its SUV portfolio over the next few years in a segment that continues to drive industry volumes.
e-Vitara Gains Traction
Maruti's electric vehicle business is beginning to gather momentum.
The company said bookings for the e-Vitara have nearly doubled, with more than 4,000 bookings received during the last month.
"The booking has increased to almost double, now it is 2X," Banerjee said.
Production remains constrained at around 2,000 units per month until additional capacity becomes available later this year, indicating that demand is currently running ahead of supply.
The e-Vitara has also emerged as an important export product for the company, crossing 35,000 cumulative exports and becoming Maruti Suzuki's third-largest export model after the Fronx and Jimny.
Exports Continue to Outperform
Exports remained another bright spot.
Maruti shipped 41,914 vehicles overseas in May, up 34.3% year-on-year, while cumulative exports for April-May rose 38.6%.
The company exports vehicles to more than 100 countries and said eight of India's top ten exported passenger vehicle models currently come from the Maruti Suzuki stable.
Market Share Recovery in Focus
Maruti's market share stood at 42% in April, and the company expects another strong showing in May as production constraints ease and volumes improve across key models.