Maruti Suzuki share price rallies 4% to 9-week high after April sales rise 7%
The company reported a 7% increase in total sales to 179,791 units in April, compared to 168,089 units during the same month last year.
In contrast, sales of compact cars such as the Baleno, Celerio, Dzire, Ignis, Swift, and WagonR rose to 61,591 units from 56,953 units. Sales of utility vehicles, including the Brezza, Ertiga, Grand Vitara, and XL6, also increased to 59,022 units from 56,553 units.
The Eeco van recorded sales of 11,438 units in April, compared to 12,060 units a year earlier, while light commercial vehicle Super Carry sales rose to 3,349 units from 2,496 units.
The company also reported that its exports stood at 27,911 units in April, up from 22,160 units in the same month last year. Additionally, Maruti Suzuki released its production figures for the month.
Total production in April rose to 179,956 units from 169,751 units a year earlier. Within the passenger vehicle segment, production of mini cars like the Alto and S-Presso fell nearly 29% to 9,714 units from 13,702 units.
On the other hand, utility vehicle production — including models like the Brezza, Ertiga, and Fronx — rose by 19% to 72,640 units, reflecting strong demand. However, the company is witnessing a significant decline in demand for entry-level cars.
Maruti Suzuki Chairman R.C. Bhargava noted that affordability is a major concern for small car buyers. 'Unless something changes, the domestic market will remain muted. In this current year, sales of small cars have declined by about 9%. If there is such a decline in the sales of cars that can be afforded by 88% of people earning, how can we expect growth?' he said.
'To boost demand, small cars have to become more affordable,' Bhargava added. 'It is not the case that India has become affluent and everyone wants to buy more expensive cars.'
The company reported a consolidated net profit of ₹ 3,911 crore for the January–March 2025 quarter, 1% lower than ₹ 3,952 crore in the same period last year. Revenue from operations rose 6.6% year-on-year to ₹ 40,920.1 crore, compared to ₹ 38,471.2 crore a year ago.
Following the Q4FY25 results, the company's stock target price was revised downward to ₹ 12,886 from ₹ 13,290 by Japanese brokerage firm Nomura, while retaining its 'Neutral.' rating on the stock. Axis Securities also reduced its target price to ₹ 11,170 from ₹ 12,065 but maintained its 'Buy' rating.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
First Published: 2 May 2025, 11:05 AM IST
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
11 hours ago
- Time of India
Car sales inch up in July after two-month slump; industry pins hopes on festive cheer
Domestic passenger vehicle sales rose about 1% in July, marking a slight recovery after two straight months of decline, amid persistently sluggish consumer demand. Companies are cautiously optimistic that sales will accelerate further during the coming festive season, starting with Onam in August. Explore courses from Top Institutes in Please select course: Select a Course Category Healthcare Digital Marketing Technology Cybersecurity Management others Finance Operations Management PGDM Product Management Others healthcare Leadership Public Policy CXO MBA Degree Data Science MCA Project Management Data Analytics Data Science Design Thinking Artificial Intelligence Skills you'll gain: Financial Analysis in Healthcare Financial Management & Investing Strategic Management in Healthcare Process Design & Analysis Duration: 12 Weeks Indian School of Business Certificate Program in Healthcare Management Starts on Jun 13, 2024 Get Details As many as 348,000 cars, sedans, and utility vehicles were dispatched from factories to dealerships last month, compared with 344,000 vehicles in July 2024, according to industry estimates. Retail sales were flat at about 328,000 vehicles last month. At the country's largest carmaker Maruti Suzuki , wholesale volumes were largely unchanged at 137,776 vehicles last month. Partho Banerjee, senior executive officer (marketing and sales) said while Maruti has seen an uptick in bookings ahead of the festive season, starting with Onam in Kerala, conversions are slow. 'Growth in rural markets which stood at about 10% last year, has now come down to 2-3%. In urban areas, with layoffs in the IT sector, buyers are cautious,' Banerjee said, adding, 'We have, however, seen an increase in bookings which is a positive sign.' 'With the advent of the festive season, as things stabilise, we expect the demand momentum to pick up,' said Banerjee. Maruti Suzuki has so far recorded a 10% increase in bookings in Kerala. Korean rival Hyundai Motor India too saw sales dip by 10% to 43,973 vehicles in July. Tarun Garg, chief operating officer, said, 'While the overall auto industry has seen some softness in recent months, we remain optimistic with the onset of the festive season and are fully geared up with robust supply and product offerings.' Meanwhile, Tata Motors saw passenger vehicle sales decline by 12% to 39,521 units last month. At Toyota Kirloskar Motor too, sales fell by 1.2% to 29,159 vehicles in July. Mahindra & Mahindra (M&M) and JSW MG Motor India were among the few to buck the sluggish industry trend, recording an increase in wholesale volumes in July. While sales at Mahindra climbed 20% to 49,871 vehicles, JSW MG posted a 46% surge to 6,678 vehicles. Nalinikanth Gollagunta, CEO (automotive division) at M&M said, 'Our SUV growth has been supported by the recent launch of XUV 3XO 'REVX' Series & the commencement of deliveries for Pack two variants of the BE 6 and XUV 9E models.' In the commercial vehicle segment, market leader Tata Motors posted a 4% sales growth at 26,432 units in July. Chennai-based Ashok Leyland recorded a similar 4% rise to 13,501 units while VE Commercial Vehicles' sales of Eicher branded trucks and buses grew 6% to 6,410 units. Two-wheeler sales remained healthy in the month under review. At TVS Motor Company , domestic two-wheeler sales increased 21% to 308,720 units in July. Royal Enfield reported a 25% growth at 76,254 units. In the farm equipment segment, market leader M&M sold 26,990 tractors last month, a 5% increase from a year earlier. 'This performance was driven by sustained land preparation activities, supported by robust cash flows in rural markets following the conclusion of Rabi crop harvesting," said Veejay Nakra, president (farm equipment business) at M&M. 'Additionally, the normal progression of monsoon across most regions further contributed to good demand during the onset of sowing for the Kharif season."
Economic Times
11 hours ago
- Economic Times
Car sales inch up in July after two-month slump; industry pins hopes on festive cheer
Agencies Representative image Domestic passenger vehicle sales rose about 1% in July, marking a slight recovery after two straight months of decline, amid persistently sluggish consumer are cautiously optimistic that sales will accelerate further during the coming festive season, starting with Onam in many as 348,000 cars, sedans, and utility vehicles were dispatched from factories to dealerships last month, compared with 344,000 vehicles in July 2024, according to industry estimates. Retail sales were flat at about 328,000 vehicles last month. At the country's largest carmaker Maruti Suzuki, wholesale volumes were largely unchanged at 137,776 vehicles last month. Partho Banerjee, senior executive officer (marketing and sales) said while Maruti has seen an uptick in bookings ahead of the festive season, starting with Onam in Kerala, conversions are slow. 'Growth in rural markets which stood at about 10% last year, has now come down to 2-3%. In urban areas, with layoffs in the IT sector, buyers are cautious,' Banerjee said, adding, 'We have, however, seen an increase in bookings which is a positive sign.' 'With the advent of the festive season, as things stabilise, we expect the demand momentum to pick up,' said Banerjee. Maruti Suzuki has so far recorded a 10% increase in bookings in Kerala. Korean rival Hyundai Motor India too saw sales dip by 10% to 43,973 vehicles in July. Tarun Garg, chief operating officer, said, 'While the overall auto industry has seen some softness in recent months, we remain optimistic with the onset of the festive season and are fully geared up with robust supply and product offerings.'Meanwhile, Tata Motors saw passenger vehicle sales decline by 12% to 39,521 units last month. At Toyota Kirloskar Motor too, sales fell by 1.2% to 29,159 vehicles in July. Mahindra & Mahindra (M&M) and JSW MG Motor India were among the few to buck the sluggish industry trend, recording an increase in wholesale volumes in July. While sales at Mahindra climbed 20% to 49,871 vehicles, JSW MG posted a 46% surge to 6,678 vehicles. Nalinikanth Gollagunta, CEO (automotive division) at M&M said, 'Our SUV growth has been supported by the recent launch of XUV 3XO 'REVX' Series & the commencement of deliveries for Pack two variants of the BE 6 and XUV 9E models.' In the commercial vehicle segment, market leader Tata Motors posted a 4% sales growth at 26,432 units in July. Chennai-based Ashok Leyland recorded a similar 4% rise to 13,501 units while VE Commercial Vehicles' sales of Eicher branded trucks and buses grew 6% to 6,410 units. Two-wheeler sales remained healthy in the month under review. At TVS Motor Company, domestic two-wheeler sales increased 21% to 308,720 units in July. Royal Enfield reported a 25% growth at 76,254 units. In the farm equipment segment, market leader M&M sold 26,990 tractors last month, a 5% increase from a year earlier.'This performance was driven by sustained land preparation activities, supported by robust cash flows in rural markets following the conclusion of Rabi crop harvesting," said Veejay Nakra, president (farm equipment business) at M&M. 'Additionally, the normal progression of monsoon across most regions further contributed to good demand during the onset of sowing for the Kharif season."
Hindustan Times
11 hours ago
- Hindustan Times
Maruti Suzuki sees compact car uptick in July amid structural stress in entry segment
In a surprising turn of events, Maruti Suzuki , the leading carmaker in India, after a very long period has reported an uptick growth for its compact car segment. The carmaker has long been advocating the resurgence in the small car segment for the growth of the Indian passenger vehicle market. Maruti Suzuki saw a 5.6 per cent rise in compact car sales in July 2025, led by Dzire and WagonR, even as entry-level and SUV segments showed weakness. With exports growing and festive demand ahead, the company remains cautious in its FY26 outlook. In the month of July 2025, Maruti Suzuki reported total retail sales of 72,489 units for its compact car segment as compared to 68,642 units it retailed for the same month last year, marking a growth of 5.6 per cent. In contrast, the utility vehicle segment saw a decline of 6.2 per cent in the same month—from 56,302 units in July 2024 to 52,773 units in July 2025. In fact, out of the top three cars sold by Maruti Suzuki in July, two were from the compact car segment—the Dzire with 20,895 units topped the charts, while the WagonR, with 14,700 units, secured third spot. Partho Banerjee, Senior Executive Officer, Marketing and Sales, attributed part of the compact segment's resilience to the renewed demand for the WagonR, which he said is 'back on track." According to him, bookings for the model have picked up, reaffirming its status as a trusted city commuter. However, not everything is as buoyant in the small car universe. The entry-level conundrum The mini car segment, once the backbone of India's motorisation journey, continues to show signs of stress. Maruti's Alto K10 and S-Presso, once the poster children of affordable mobility, recorded combined sales of just 6,822 units in July—a sharp 31.5 per cent decline year-on-year. The reason is not difficult to decipher. Despite its past history of affordability, this segment has been hit hard by disproportionate exposure to price inflation, regulatory expenses (safety mandates), and lack of wage growth in its fundamental rural and small-town consumer base. Also Read : Maruti calls for small car revival to drive auto growth, banks on exports for near-term gains Financing, particularly to first-time buyers, still remains an impediment, added to by tighter norms post-pandemic and NBFC risk aversion. As Banerjee has pointed out, there is demand on paper—enquiries and visits are intact—but the conversion is low-key because of the initial cost burden. 'The entry segment needs structural support, possibly in the form of GST rationalisation," he reiterated. Until then, this segment may continue to wobble, despite its strategic importance to market expansion. Resilience in compact car segment The compact car segment, on the other hand, appears to be benefiting from a more balanced equation. Products like the Dzire and WagonR offer a blend of affordability and features, especially with CNG variants and automated manual transmissions (AGS) that appeal to cost- and comfort-conscious buyers alike. In fact, CNG models constituted about 40 per cent of the total domestic sales for the company in July 2025 and 37.5 per cent in the first quarter of financial year 2025-26. Interestingly, limited edition variants launched in the past quarter helped infuse freshness into long-standing models. 'When the market is muted, it's important for the leader to spark excitement," said Banerjee. These variants, paired with pre-festive schemes, have helped the Dzire and WagonR maintain relevance even in a market weighed down by cautious sentiment. Also read: Maruti Suzuki Alto K10, Celerio, S-Presso Dream Edition launched at ₹4.99 Lakh Bookings for these models are robust, but as Banerjee noted, there's still an intervening gap between reservations and sales — all because of reluctance among metro consumers and ongoing credit woes among first-time buyers. The SUV plateau and the Eeco dip The decline in UV sales is not necessarily a condemnation of demand but more an instance of temporary market fatigue and internal readjustment. While models like Brezza and Fronx continue to do well, Banerjee acknowledged that the SUV market may have reached a short-term plateau. 'There were over ten SUV launches last year alone, and now the base is expanding. Growth will continue, but it's more about resizing than runaway demand," he said. The Eeco, once a reliable volume generator for Maruti, is also showing signs of strain. A 6 per cent price hike following the inclusion of six airbags has created financing hurdles for buyers. 'The interest is there, but conversions are delayed. We're working with NBFCs to bridge that gap," Banerjee noted. Eyes on the festive quarter Looking ahead, Maruti expects the compact segment to continue offering steady momentum, particularly during the festive season. With Onam in Kerala marking the start of the festive calendar, Maruti Suzuki is cautiously optimistic. Bookings in Kerala have already grown by 10 per cent year-on-year, and the company expects this momentum to carry into Ganesh Chaturthi and Navratri. While the company isn't pushing dispatches merely to boost wholesales, it is preparing to ramp up production of high-demand CNG variants and limited editions to match anticipated demand. 'We're calibrating stock carefully — volume will follow, but we're not chasing it blindly," said Banerjee. But the outlook is not without caveats. 'Entry-level remains under stress," admitted Banerjee. 'And while there's optimism, we need to watch financing behaviour closely." Maruti is also working with NBFCs to bridge financing gaps in smaller towns, but the impact may take time to reflect in wholesale figures. Exports: The silent buffer With domestic demand showing visible fatigue, Maruti is turning increasingly to exports for growth. The company has set an ambitious target of 400,000 export units in FY26, up from 283,000 units in FY25. What's more telling is that the company now accounts for 43 per cent of India's passenger vehicle exports, with plans to push that share closer to 50 per cent. Also Read : Maruti Suzuki India eyes 4 lakh exports in FY26 to counter domestic market slowdown Africa, Latin America, and ASEAN continue to be focus geographies, but a surprising bright spot has been Japan—Maruti's second-largest export market, thanks largely to the Jimny and Fronx. These models, engineered in India, are finding takers even in quality-conscious mature markets. As Partho Banerjee had earlier remarked, 'Exports are helping us balance out domestic fluctuations. In a way, they've become our second growth engine." Get insights into Upcoming Cars In India, Electric Vehicles, Upcoming Bikes in India and cutting-edge technology transforming the automotive landscape. First Published Date:
