India was the fastest growing market for the Japanese car maker in automobile sales, with volumes rising by 34 percent in the first half of FY23.
Minami-ku, Hamamatsu, Japan-based Suzuki Motor Corporation (SMC) has revised its annual sales forecast by 12 percent for the current financial year to three million units, led by strong offtake in volumes in the Indian market.
This upward revision in forecast for the current year comes even as the global automotive market is still not out of the woods from semiconductor supplies and other woes.
The small car maker has forecasted that it will globally sell about 3.34 lakh units more than its previous forecast of 2.70 million vehicles in FY23 (or FY22 Japanese financial year (April 2022 to March 2023). In 2021, Suzuki's global unit sales of automobiles added up to approximately 2.76 million vehicles, increasing from around 2.45 million in the previous year.
India was the fastest growing market for Suzuki in automobile sales, with volumes rising by 34 percent in H1FY23, giving enough confidence to revise its guidance higher.
Suzuki expects the Indian market to grow by 21 percent in the current financial year, according to a financial presentation made by the company.
Asia's third largest economy accounted for 60 percent of total output of Suzuki Motor Corporation and 55 percent of its total sales in the first half of FY23. In terms of revenues, India accounted for 42 percent of automobile revenues for Suzuki Motor Corporation in the first six months of this financial year.
“While there is no change in our perception that the risk of global recession is increasing, we have revised the forecast upward to reflect the progress of the first half of the fiscal year and the review of unit sales and the weak yen,” stated the note to investors.
Suzuki has forecasted net sales for FY23 to close with ¥4,500 billion (up 26.1 percent YoY, up ¥600 billion from the previous forecast. The operating profit was ¥290 billion up 51.5 percent YoY, up ¥95 billion from the previous forecast, said the note from the company.
On the performance of the Indian subsidiary, Suzuki Motor said, the growth in UV segment due to introduction of the new ‘Brezza’ and new SUV ‘Grand Vitara’ resulted in an increase of 34.4 percent year-on-year.
The push towards CNG vehicles has helped the company garner about a fifth of its total sales from the alternate fuel. The share increases to 30 percent in models where CNG is available as an alternative. In the six months of FY23, Maruti Suzuki sold 1.67 lakh units of CNG powered vehicles.
The net sales of the company increased by ¥543.9 billion (32.5 percent) year-on-year (YoY) to ¥2,217.5 billion. The operating profit increased by ¥65.2 billion (65.8 percent) YoY to ¥164.3 billion in H1FY22 (Japanese financial year April 2022 to March 2023).
In its note to investors, Suzuki Motor Corporation said, “The increase in net sales for Suzuki Motors was largely because of the increase of volume in India and impact of the exchange rate.”
Suzuki posted its highest net sales and operating profit in four years and for India, Maruti Suzuki India Chairman R C Bhargava recently said, it is still gunning for a two million units production plan for FY23.
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