1. Maruti Suzuki stays No 1 UV automaker in April-June quarter courtesy Brezza

Maruti Suzuki stays No 1 UV automaker in April-June quarter courtesy Brezza

Maruti Suzuki, the numero uno car maker in the country, which emerged as the number one utility vehicle player in April on the back of its newly launched compact sports utility vehicle Brezza, has maintained its lead in the segment during the April-June quarter as well.

By: | New Delhi | Updated: July 12, 2017 5:59 AM
According to the data released by Society of Indian Automobile Manufacturers, during the April-June period Maruti’s volumes in the UV segment increased by 45% year on year to 57,125 units. (Reuters)

Maruti Suzuki, the numero uno car maker in the country, which emerged as the number one utility vehicle player in April on the back of its newly launched compact sports utility vehicle Brezza, has maintained its lead in the segment during the April-June quarter as well. According to the data released by Society of Indian Automobile Manufacturers, during the April-June period Maruti’s volumes in the UV segment increased by 45% year on year to 57,125 units. During this period the company outperformed the overall industry’s UV growth which increased by 7.5% to 190,098 units.

The erstwhile largest manufacturer of utility vehicles Mahindra and Mahindra (M&M) reported a decline in volumes in the UV segment by 5% y-o-y to 53,082 units.

As a result of the increasing volumes in the segment Maruti’s market share in the UVs has increased to 30% compared to 27.9 % of M&M during the period mentioned above. This is the first time when Maruti has emerged as the largest utility vehicle manufacturer in a quarter.

In June when most of the manufacturers reduced wholesale dispatches since dealers did not want to increase the inventory before the roll out of GST, Maruti’s dispatches in the UV segment increased by 42.9% y-o-y to 13,879 units.

“Most of Maruti’s competitors have a limited number of successful models, which makes it difficult to retain customers or cross-sell products. Maruti, on the other hand, enjoys a virtuous cycle of new and old car sales. A higher number of successful models leads to better cross-selling and upgrades,” said analysts of HSBC in a report.

Also Read: 

Maruti Suzuki has been selling average monthly 10,000 units of Vitara Brezza in the domestic market for the past six to eight months and due to the high demand and capacity constraint in the existing plants the average waiting period for the vehicle is almost 20 weeks or 5 months. Ertiga on the other hand has been a steady performer for the company by clocking average monthly volumes in the range of 4,500 to 5,000 units a month.

“We expect revenue share of Baleno and Brezza to increase to 32% of total revenues by FY2020 from 20% in FY2017. As Baleno and Brezza achieve cumulative volume of 200,000 units since launch in FY2018 itself, we see margins of these two models increasing significantly in FY2019,” said analysts of Kotak Institutional Equities in a report.

  1. No Comments.

Go to Top