Maruti Suzuki’s wholesale dispatches rise 9.9% in February

Maruti Suzuki’s wholesale dispatches rise 9.9% in February

Maruti Suzuki India on Monday reported a 9.9% year-on-year (y-o-y) growth in domestic wholesale to 147,483 units in February. The automaker also replenished inventory at dealerships after improved sales during the October to December period.
The sales growth was aided by a sustained recovery in demand for entry-level cars, hatchbacks and utility vehicles.
The growth in wholesales though comes on a very low base, with the company reducing production due to falling demand for vehicles and transition to Bharat Stage-VI emission norms in the corresponding period. In FY20 the company reported 17% decline in sales. Hatchback and compact car sales grew by 7.3% y-o-y to 104,476 units during the month, while those of utility vehicles rose 18.9% to 26,884 units.

Maruti’s exports also increased by 11.9% y-o-y to 11,486 units during the month. Despite a decent recovery in retail sales, auto makers like Maruti Suzuki and others are concerned about the negative impact of rising fuel prices and Covid infections in certain states on vehicle demand.
The company though reported its highest ever production of vehicles in October expecting robust demand during the festive season. Demand for Maruti’s compact vehicles has continued to grow beyond the festive season as customers are preferring personal mobility to avoid Covid infections. Maruti’s total sales during the month increased by 11.8% y-o-y to 164,469 units, one of the highest for the company.

Disclaimer –
This document is meant for the recipient only for use as intended and not for circulation. This document should not be reproduced or copied or made available to others. The information contained herein is from the public domain or sources believed to be reliable. While reasonable care has been taken to ensure that information given is at the time believed to be fair and correct and opinions based thereupon are reasonable, due to the very nature of research it cannot be warranted or represented that it is accurate or complete and it should not be relied upon as such. Also above note is not a recommendation to Buy or SELL and is only a view based on facts and figures and we will be in no way responsible for any losses incurred by anyone who uses this information to either trade or invests securities mentioned herein.