Maruti's rural sales soar 15%, far outpacing urban growth at 2.5% in Q3FY25: Rahul Bharti

India’s largest carmaker Maruti Suzuki India Ltd's (MSIL) rural retail growth in Q3 FY25 stood at an impressive 15%, significantly higher than urban retail growth, which was recorded at just 2.5%. Overall retail growth for Q3 reached 8.3%, reflecting a slowdown in consumer demand from urban markets. 

“Rural has been growing better than urban and we’re seeing that  increasingly rural trends are coming closer to urban. It serves as a derisking measure for India’s consumption, not just for cars but for all commodities,” Rahul Bharti, ED, Corporate Affairs, Maruti Suzuki India Ltd said at the company’s Q3 investor call on Wednesday. 

Even though rural markets are increasingly mirroring urban trends, rural consumption continues to provide a crucial traction point, especially for smaller models like the Maruti Alto, which cater to the needs of price-sensitive and first-time buyers, according to the company. 

As rural markets remain a strong driver for growth, their stability provides a cushion against economic fluctuations that may impact urban markets more severely, according to the company.

Maruti Suzuki reported a robust performance for the quarter, reflecting the growing influence of rural markets. 

The company's total consolidated revenue from operations rose 15.7% year-over-year (YoY) to ₹38,764.3 crore, compared to ₹33,512.8 crore in Q3 FY24. On a standalone basis, Maruti Suzuki’s profit climbed 13% YoY to ₹3,525 crore from ₹3,130 crore in the corresponding quarter last year. 

The company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) grew 14.4% YoY to ₹4,470.3 crore from ₹3,907.9 crore. Despite this growth, EBITDA margins saw a slight dip, settling at 11.6% compared to 11.7% in the previous year.

Maruti Suzuki reported its highest-ever net sales for the quarter, reaching ₹36,802 crore, a significant increase from ₹31,860 crore in the same period last year. The company’s total vehicle sales rose nearly 13% YoY, with 5,66,213 vehicles sold in Q3, compared to 5,01,207 units in the previous year’s corresponding quarter. 

In the domestic market, Maruti Suzuki sold 4,66,993 units during the quarter, up from 4,29,422 units in the same quarter last year.